Eskom Holdings SOC Ltd. Reports 341 Days Without Loadshedding Amid Financial Challenges In South Africa

South Africa’s state-owned power utility Eskom, has presented a more optimistic outlook for the 2026/27 financial year, highlighting major operational improvements and a significant reduction in loadshedding. During a recent briefing to the Portfolio Committee on Electricity and Energy, Eskom reported that the country had achieved 341 consecutive days without loadshedding, marking one of the strongest periods of grid stability in recent years.

Eskom’s leadership, headed by Chairman Mteto Nyati, informed lawmakers that the utility had achieved 67% of its operational performance targets, showing improvement compared to the previous financial year. The utility credited much of this progress to better maintenance planning, improved plant performance, and reduced reliance on expensive diesel-powered generation.

A major achievement highlighted during the briefing was the 62% reduction in diesel expenditure, which resulted in savings of nearly R10 billion. Eskom stated that these savings are now being redirected toward strengthening critical infrastructure and carrying out long-overdue maintenance work across the power network. The improved operational performance has also allowed the utility to project a stable winter electricity outlook, with no planned power cuts expected even during periods of high electricity demand.

Despite the operational improvements, members of Parliament raised concerns about the financial pressure faced by ordinary South Africans. One of the key issues discussed was Eskom’s proposed electricity tariff increase of 8.76%. Lawmakers questioned whether consumers, particularly low-income households already struggling with rising living costs, would be able to afford higher electricity prices.

In response, Eskom said it is focusing on achieving R112 billion in cost efficiencies over the next five years. The utility explained that these savings are intended to reduce financial pressure and help ensure that future tariff increases remain within single-digit levels.

The growing issue of municipal debt also remained a major concern during the meeting. Eskom revealed that outstanding municipal debt has now reached R110 billion. Although debt from several large metropolitan municipalities has decreased, the overall debt burden continues to rise because many municipalities participating in debt-relief programs have failed to meet the required repayment conditions. Eskom confirmed that it is working closely with the National Treasury to identify long-term solutions to the problem.

Lawmakers also questioned employee salary increases and performance bonuses, especially at a time when some operational targets are still not being fully achieved. Eskom defended the spending, saying competitive salaries are necessary to retain skilled workers and technical specialists, while also acknowledging the need for tighter cost-control measures in the future.

The committee further discussed the ongoing threat of cable theft and vandalism, which continue to damage electricity infrastructure and threaten grid reliability. Eskom said it plans to strengthen cooperation with law enforcement agencies to better protect its assets and maintain stable electricity supply across the country.