CAPITAL CALCULATIONS OP-ED: Eskom’s Medupi and Kusile sleight-of-hand — the untold billions in costs left out
Eskom has attacked media reports for overstating the cost of Medupi and Kusile. But its own figures answer a much narrower question – and its refusal to disclose what is excluded raises a more serious issue of transparency and accountability.
Eskom has dismissed media reports suggesting its Medupi and Kusile power stations are significantly over budget, but its own figures only reveal a partial financial picture. The utility's 10 September 2026 statement states that Medupi's approved construction budget remains at R145-billion, with R131.1-billion spent, while the Kusile budget is at R160.5-billion, with R155.5-billion already expended.
However, Eskom's own 2016 report showed Medupi's actual cost exceeded its approved budget by R43.7-billion, mainly due to capitalised borrowing costs. Furthermore, major costs like water and transmission infrastructure, the flue gas desulphurisation plant, and plant failures are not included in the stated budgets, making the information incomplete and misleading.
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