Eskom doubles profit to R30.3bn despite falling electricity demand

South Africa's power utility, Eskom, has reported a significant increase in profits, reaching R30.3 billion for the financial year ended March 31, 2026. This marks a substantial rise from the R14 billion profit in the previous year. The improved financial performance is attributed to better operational efficiency, reduced diesel consumption, and stringent cost controls.

Eskom's EBITDA margin further increased to 30.63% from 28.75% in the prior year. Chairman Mteto Nyati emphasized that profit is essential for sustaining the utility's dual mandate: running a financially sound business while keeping South Africa connected and growing. The enhanced financial position will enable Eskom to invest in its operations, including its green energy program, distribution network, coal fleet, and grid.

Eskom's use of open-cycle gas turbines notably reduced by more than half, leading to fuel and storage cost savings of R10.6 billion. The utility also reported only four days of load shedding, totaling 26 hours, indicating a marked decrease from previous years. Despite the profit boost, Eskom warned that falling electricity demand is a growing concern.

Electricity sales declined by 6.2% to 178 TWh, with a 22.5% drop in industrial demand. Additionally, municipal debt has become a significant challenge, with municipal arrears increasing by 17.9% to R111.6 billion at the end of March, rising to about R119 billion by June. Eskom cautioned that this debt could potentially grow to R358 billion by 2031 if immediate action is not taken.