Key takeaways:
- Eskom’s profit after tax more than doubled to 30.3 billion rand ($1.9 billion) in the year through March
- Power cuts ended in May last year as the utility improved performance and cut diesel spending by 10.6 billion rand
- Municipal arrear debt continues to climb, reaching 105 billion rand as of September 2025
South Africa’s state-owned power utility Eskom more than doubled its profit in the year ended March as improved generation performance helped end power cuts and reduce operating cost.
Eskom spokesperson, Daphne Mokwena, disclosed the results in a press briefing in Johannesburg on Monday, saying profit after tax rose to R30.3 billion ($1.88 billion) from R14 billion ($866.9 million) in the previous financial year.
The stronger result marks a major turnaround for Eskom after years of losses, unreliable power stations and severe electricity shortages that weighed on South Africa’s economy. The utility returned to profitability in the 2025 financial year and has now recorded a second consecutive year of profit.
Eskom said the improvement was supported by better plant performance and lower spending on diesel-fired turbines used to supplement electricity generation.
Power cuts ended in May last year after the utility improved the availability of its generation fleet. Eskom also reduced its use of expensive open-cycle gas turbines, helping it save R10.6 billion ($657 million) in diesel costs during the financial year.
Eskom’s profit rises as power cuts end
The latest profit represents a sharp reversal from Eskom’s financial position two years ago, when the utility reported a R55 billion ($3.4 billion) loss.
Eskom recorded a R16 billion ($991 million) profit in the 2025 financial year, its first profit in eight years. The latest result means the utility has more than doubled its profit in one year.
A 12.74% electricity tariff increase from April last year also supported revenue during the period. At the same time, improved reliability at Eskom’s power stations reduced the need for emergency generation.
The utility has attributed the improvement to sustained maintenance and stronger operational discipline across its generation fleet. Several of its coal-fired power stations had experienced years of breakdowns and poor performance before the turnaround programme began.
Eskom’s Energy Availability Factor, which measures the proportion of its generation capacity available for use, has also improved as the utility works to keep more of its power stations operational.
Municipal debt reaches R105 billion
Despite the stronger financial performance, Eskom continues to face a growing debt problem among municipalities that buy electricity from the utility.
Municipal arrear debt reached R105 billion ($6.5 billion) as of September 2025, up from R90.1 billion ($5.6 billion) a year earlier, according to Eskom’s interim results.
The increase has remained a concern as municipalities struggle to collect revenue from customers and meet their obligations to Eskom.
A government-backed municipal debt relief programme was introduced to help local authorities settle their outstanding electricity bills. Eskom, however, has said many participating municipalities continue to struggle to pay their current accounts on time and in full.
The utility has consequently considered other measures to recover the money owed to it. These include temporarily taking over electricity distribution in some municipalities through Distribution Agency Agreements.
Eskom remains South Africa’s dominant electricity supplier, with coal-fired power stations accounting for most of its generation. The utility also operates the country’s nuclear power plant as well as hydroelectric and diesel-fired facilities.
The company plans to invest R320 billion ($19.8 billion) in infrastructure over the next five years. The investment is expected to support its generation and transmission networks as South Africa works to expand electricity supply and strengthen the grid.
Eskom has also said it plans to expand its transmission network to support a planned near-doubling of the country’s power generation capacity by 2034.
