Eskom announced on Friday afternoon that it had reached a payment agreement with three Free State municipalities and would not be cutting off electricity from December 3 to an area that included Bloemfontein.
The deadline to reach an agreement was close of business on Friday.
In a short note, the power utility said that the deal followed meetings between it, electricity provider Centlec and the Mangaung Metropolitan Municipality on Thursday and Friday morning.
Eskom did not say what the payment deal involved, or refer to an earlier statement which had accused the municipality of making factually incorrect and misleading statements.
Earlier in the week the utility warned that it would have to cut off power to three between 06:00 and 20:00 due to the the non-payment of electricity bills.
This later lead to a war of words between it and the municipality over whether the notice was valid. While Eskom said that Centlec owed it a total of R169m (R148m overdue since November 16, and R21m that was 90 days overdue), the municipality disputed this figure.