KEY POINTS
- Eskom posted a R30.3bn profit, its second straight annual profit.
- Load shedding fell to just four days during the financial year.
- Municipal debt remains a major threat to Eskom’s recovery.
South Africa’s state-owned power utility, Eskom, has reported a sharp increase in profits, marking its second consecutive profitable year after nearly a decade of financial losses.
The utility recorded net income of about $1.9 billion (R30.3 billion) for the financial year ended March 2026, more than double the R14 billion profit reported in the previous financial year.
Eskom’s latest results represent a significant turnaround for a utility that spent years struggling with mounting debt, unreliable power generation and persistent financial losses.
The return to profitability has been supported by higher electricity tariffs and a marked improvement in the reliability of Eskom’s generating fleet.
During the financial year, Eskom’s average electricity tariff increased by 12.7%. At the same time, improvements in the performance of its power stations significantly reduced the need for nationwide rolling blackouts.
The combination of higher revenue and more reliable electricity supply helped strengthen the utility’s financial position.
Load Shedding Drops Dramatically
One of the biggest improvements during the year was the sharp reduction in load shedding.
South Africa experienced only four days of scheduled power cuts during the financial year, compared with 329 days recorded in 2024, according to Reuters.
The dramatic improvement meant Eskom was able to supply electricity more consistently, reducing the amount it had to spend on emergency interventions and alternative measures to stabilise the grid.
The reduction in outages also provided some relief for businesses and households. Companies faced fewer disruptions to production and had less need to rely on costly diesel-powered generators to keep their operations running.
Despite the improvement in power availability, Eskom sold less electricity during the year.
Electricity sales volumes fell by 6.2%, highlighting a major challenge facing the utility: better electricity supply does not automatically translate into higher demand.
Several factors may be contributing to the decline, including rising electricity prices, the growing adoption of private solar power systems, increased energy efficiency and weak economic activity.
