Ramokgopa rules out Eskom bailouts and double-digit tariff hikes under ‘Eskom 2.0’

Electricity Minister Kgosientsho Ramokgopa has ruled out further bailouts for struggling utility Eskom and dismissed the prospect of sustained double-digit electricity tariff increases. Ramokgopa unveiled the government's expectations for Eskom's "Eskom 2.0" plan, which aims to make the state-owned utility financially sustainable, cut costs, and lower electricity prices.

The plan involves Eskom reducing technical losses, revenue leakages, and inefficiencies, as well as addressing issues like electricity theft and inaccurate metering. Ramokgopa emphasized that government will not support any bailouts or double-digit tariff hikes, stating that Eskom must prepare itself without relying on state support or consumer subsidies.

He also stressed the need for Eskom to boost its competitiveness by lowering the cost of electricity supply through improved plant performance, procurement, maintenance, project delivery, and workforce productivity. The government is also pushing for a major expansion of the national grid, with an estimated R440 billion price tag, to support the integration of more independent generators and stimulate local manufacturing and employment.

Ramokgopa believes Eskom must expand beyond South Africa as new private generators erode its traditional dominance in the domestic electricity market, and also needs to develop a strong strategy for nuclear power, gas, renewable energy, and the future of its coal fleet. The minister further highlighted the importance of artificial intelligence in Eskom's operations, urging the utility to aggressively develop its AI capability to reduce technical losses, enhance weather and demand forecasting, and strengthen grid visibility.