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Eskom reports R30.3 billion profit as South Africa's power crisis eases
South Africa’s state-owned utility, Eskom, reported a significant financial turnaround, with profit after tax reaching R30.3 billion for the fiscal year ending March 2026. This marks a substantial increase from the R14 billion reported the previous year. The improvement is attributed to enhanced power station performance, reduced reliance on expensive diesel-powered emergency generation, and improved cost discipline.
Operational stability has also improved, with load shedding occurring on only four days during the financial year, following a period of intense electricity shortages. However, this recovery faces significant headwinds. Eskom is grappling with a municipal debt crisis exceeding 120 billion rand, which poses a threat to long-term financial sustainability. Additionally, while revenue has increased due to higher tariffs, electricity sales volumes have declined by 6.2% as customers increasingly turn to private solar generation.
In response to these challenges, President Cyril Ramaphosa has reaffirmed the government's commitment to energy reforms. These include the establishment of a state-owned, independent Transmission System Operator (TSO) to foster competition and unlock investment in the electricity sector. The reform process is being managed by the Eskom Restructuring Task Team.
Entities
Cyril Ramaphosa · Dan Morakane · Eskom · Mteto Nyati · Nersa · South Africa
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] Reduced reliance on expensive diesel-powered turbines contributed to cost savings. norvanreports.com · observer24.com.na · www.enca.com
- [● 2 SOURCES] Municipal debt has reached approximately 120 billion rand. africazine.com · observer24.com.na
- [○ 1 SOURCE] Electricity sales volumes declined by 6.2%. www.enca.com
- [● 2 SOURCES] The utility implemented rolling blackouts on only four days during the financial year. norvanreports.com · observer24.com.na
- [● 2 SOURCES] President Cyril Ramaphosa reaffirmed the commitment to establish a state-owned, independent Transmission System Operator (TSO). infrastructurenews.co.za · uzalendonews.co.ke
- [● 4 SOURCES] Eskom reported a profit after tax of R30.3 billion for the financial year ending March 2026. norvanreports.com · africazine.com · observer24.com.na · www.enca.com