Eskom’s R30bn profit can’t outrun R6bn electricity theft

Eskom reported a R30.3 billion profit in 2026, a significant improvement from the R14 billion profit reported in 2025. However, the company still faces challenges from electricity theft, meter tampering, and illegal prepaid tokens, which cost the utility billions annually. Eskom had a target of installing 800,000 smart meters by the end of 2026 to improve billing accuracy and reduce non-technical losses, but fell short of this goal by 24%.

Despite these challenges, Eskom's chairman, Mteto Nyati, expressed confidence in the company's ability to reinvest in its operations, including expanding its renewable energy business, Eskom Green, which received R9.8 billion in funding. The company also highlighted its commitment to improving grid reliability and coal fleet efficiency to accommodate new generation.

However, Eskom remains dependent on government support and new debt, with key risks including declining electricity sales, high debt-servicing costs, and escalating municipal arrears. Municipal debt is currently Eskom's biggest financial threat, with arrears increasing to R111.6 billion by the end of March 2026 and rising further to R358 billion by the 2031 financial year if no decisive action is taken.