ESKOM RECORDS SECOND YEAR IN THE GREEN - PROFIT JUMPS TO R30.3 BILLION

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Eskom has recorded a second consecutive year of profit, showing its turnaround plan is working.

For the financial year ended 31 March 2026, the power utility announced:

- Group profit after tax: R30.3 billion - more than double the R14.0 billion in 2025
- EBITDA margin: 30.63% - up from 28.75% last year (this means Eskom is keeping more profit from its sales)
- Only 4 days of load shedding in FY2026 , totalling just 26 hours - compared to daily blackouts three years ago

Eskom CFO Calib Cassim said the utility now has a healthier balance sheet, better cash flow, and has received its first credit-rating upgrade in over a decade from S&P Global, Fitch and Moody's. This also helped South Africa get a sovereign upgrade.

Chairperson Mteto Nyati said profit is not against Eskom's public duty - profit is what makes it possible to reinvest in the grid, green energy, and better service.

2. BACKGROUND - WHY THIS MATTERS:

For almost 15 years, Eskom was the symbol of crisis - R400bn+ debt, Stage 6 load shedding, bailouts from taxpayers, and diesel costs of billions.

What changed?

a) Operational Recovery: The Generation Recovery Plan fixed power stations. Unplanned breakdowns (UCLF) dropped, so Eskom burns less diesel and produces more power from its own coal fleet.

b) Government Debt Relief: Government took over R254bn of Eskom's debt. This freed up cash that was previously used to pay interest, and Eskom could instead fix power stations.

c) Financial Discipline: Cost cutting, better coal contracts, and improved internal controls after years of qualified audits.

Why is the credit upgrade important? When Eskom's rating was junk, it had to borrow at very high interest rates. Now with a better rating, it can borrow cheaper to build new power lines (grid expansion) needed to connect private solar and wind farms. That saves taxpayer money.

According to CSIR, load shedding cost the economy R2.8 TRILLION in 2023. In 2024 it dropped to R481bn. In FY2026, with minimal load shedding, the economic impact was minimal.

3. IMPACT ON THE PUBLIC:

a) On Your Electricity Bill:
Eskom says sustained profit allows it to push for single-digit tariff increases instead of the 15-20% hikes we saw before. GCE Dan Marokane said affordability discussions with government as shareholder are ongoing. Profit today = less pressure to hike tomorrow.

b) On The Economy:
When Eskom is stable, investors trust South Africa. Factories can produce, mines can mine, small businesses don't need expensive generators. This protects jobs and lowers costs of goods.

c) On Taxpayers:
A profitable Eskom stops draining the national budget. Money that used to bail out Eskom can now go to health, education and grants. A stronger Eskom also strengthens SA's overall credit rating, meaning government borrows cheaper.

d) On Future Energy:
Profits will be reinvested into:
- Eskom Green - renewable energy projects
- Distribution - fixing substations and cables in townships and suburbs (fewer local outages)
- Grid Expansion - new transmission lines so private solar/wind can connect

4. WHAT YOU CAN DO / HOW TO BE INVOLVED:

Eskom's turnaround doesn't mean you should waste electricity. Sustainability is still key.

For Households:
- Continue using electricity efficiently - profit helps keep increases in single digits, but saving helps more. Use energy-efficient bulbs, geyser timers, and gas where possible.
- Report illegal connections and meter tampering in your area - they cost Eskom billions and cause local substations to explode. Report anonymously on MyEskom App or 0800 11 27 22.

For Small Businesses:
- Now is a good time to consider rooftop solar with battery, as the grid is stable. You can also register to feed excess power back to Eskom/municipality where allowed.
- Monitor Eskom's grid expansion plans if you are an IPP or want to wheel power.

For Job Seekers / Youth:
- Eskom announced reinvestment in future-ready technologies. Follow Eskom's careers portal and youth programmes (bursaries, learnerships, artisan training) at http://www.eskom.co.za/careers

SOURCE: Eskom SOC Ltd Annual Financial Results for FY2026 via http://SAnews.gov.za