Eskom has reported a major profit for 2026. But what exactly does that mean for electricity supply and South African consumers?
Eskom is making money again – and this time, it has reported a profit that would have seemed almost unimaginable during the worst years of South Africa’s electricity crisis.
The state-owned power utility announced on Monday, 31 August, that its profit after tax increased to R30.3 billion for the financial year ended March 2026.
That is more than double the R14 billion profit recorded in the previous financial year, making it Eskom’s second consecutive profitable year after almost a decade of losses.
But what does that actually mean for ordinary South Africans?
Perhaps the most important part of Eskom’s turnaround is not the profit itself, but what has happened to the power system.
According to Eskom, South Africa experienced only four days of load shedding during the 2026 financial year, compared with 329 days in 2024.
Eskom says improved generating-plant availability, better cost control, and reduced reliance on expensive diesel generation have improved both its operational performance and its finances.
In simple terms, Eskom has been spending less money keeping the lights on while getting more reliable performance from its existing power stations.
And THAT is good news for the country.
A more reliable electricity supply is important not only for households but also for businesses, factories, mines and the wider economy.
This is where things get a little less exciting for consumers. Eskom’s improved profitability does not mean electricity prices are about to fall.
The utility’s revenue increased partly because of a 12.74% regulated tariff increase, while electricity sales volumes actually fell by 6.2%.
So while Eskom is financially healthier, South Africans are still** paying substantially more** for electricity than they were before.
The company says its improved financial position should allow it to continue investing in infrastructure while working with government on electricity affordability.
The utility says its capital expenditure programme is expected to increase from about R45 billion in FY2026 to more than R70 billion a year by FY2029.
It plans to invest a total of around R343 billion over the next five years.
That money is intended to help maintain and expand critical electricity infrastructure, improve the reliability of the generation fleet and expand the grid so that new generation can be connected.
For consumers, the hope is that continued investment will help prevent South Africa from returning to the severe electricity shortages experienced in previous years.
Not quite, but the latest figures do show a genuine improvement, particularly compared with the disastrous financial and operational position Eskom found itself in a few years ago.
But profitability alone doesn’t solve the utility’s structural problems.
Eskom still has substantial debt, municipalities owe it tens of billions of rand, and electricity affordability remains a major concern.
The encouraging part for South Africans is that the utility now has more financial breathing room and a significantly more reliable electricity system to build on.
The real test will be whether Eskom can maintain that progress without South Africans having to pay increasingly higher prices for electricity.
Follow the story
