Eskom ordered to lower long-term power costs as chairperson term is extended

South African Electricity and Energy Minister Kgosientsho Ramokgopa has issued a mandate to Eskom to develop a long-term plan to reduce electricity costs without relying on continuous state support or high tariff increases. The requested roadmap must cover the next three, five, and ten years, addressing how the utility will fund new generation, expand the grid, and maintain reliable supply while competing in an opening market.

While the directive focuses on long-term financial sustainability, it does not immediately lower current electricity bills. The National Energy Regulator of South Africa has already approved tariff increases for 2026. The Minister identified key areas for improvement, including reducing revenue leakage, optimizing procurement, and addressing municipal debt.

Concurrently, Mteto Nyati’s term as Eskom Board Chairperson has been extended by three years, effective November 1, 2026. Eskom leadership welcomed the decision, stating that the extension provides continuity as the utility works toward operational sustainability, the unbundling of its business units, and the expansion of renewable energy through Eskom Green.