{
  "id": 5902756,
  "title": "Eskom has turned the corner. Government is waiting with a knife",
  "url": "https://urgent.news/2026/09/06/eskom-has-turned-the-corner-government-is-waiting-with-a-knife",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-06T04:00:00.000Z",
  "source": {
    "name": "IOL",
    "slug": "iol",
    "url": "https://iol.co.za/sunday-tribune/opinion/2026-09-06-eskom-has-turned-the-corner-government-is-waiting-with-a-knife/"
  },
  "original_language": "en",
  "account": "Eskom has emerged from a period of state capture, managerial mismanagement and political interference, with its latest financial results showing a significant turnaround. The company's profit after tax more than doubled to R30.3 billion, while adjusted EBITDA reached R108.6 billion. Cash generation improved, expensive diesel usage decreased, and plant availability increased to 65.16%. Eskom has experienced 460 consecutive days without load shedding, a milestone that demonstrates recovery.\n\nHowever, government's intentions for reform may undermine these gains. Despite a 12.74% tariff increase, revenue has fallen by 6.2%, and Eskom remains heavily indebted with R111.6 billion in municipal arrears. Government relief was crucial in reaching these results, but this does not mean that caution can be abandoned. The dispute centers around the future ownership of the transmission grid, aimed at creating an independent state-owned Transmission System Operator (TSO) that operates market regulations, grid access and ensures non-discriminatory treatment for Eskom and private generators.\n\nWhile the case for an independent operator is valid, immediate transfer of asset ownership is not the same as creating an independent entity. The Electricity Regulation Amendment Act allows for a transition period, with Eskom's transmission subsidiary continuing its functions until 2029. However, in December 2025, the Electricity and Energy Minister, Kgosientsho Ramokgopa, approved a strategy where the TSO would operate the market, while grid assets remained within Eskom during the transition. This decision was overturned by President Cyril Ramaphosa in the State of the Nation Address, insisting on an immediate transfer of the TSO.\n\nThe government argues that this policy certainty is beneficial, but Eskom's board has reservations. Chairman Mteto Nyati warned that a premature transfer could trigger loan provisions, create accounting complications, and unsettle bondholders. The value of the assets is around R110 billion, so any transfer must be carefully considered. The President rebuked Nyati publicly, accusing him of creating the impression that restructuring was proceeding without Eskom's interests at heart. However, the board is legally obliged to protect its assets and act in the entity's best interests, according to Section 50 of the Public Finance Management Act.\n\nNyati has raised concerns about the pace and scale of the restructuring, arguing that Eskom could become a casualty if the process is rushed. The Ministry of Finance, responsible for overseeing this process, is not actively driving decision-making, leaving the future of Eskom's transmission grid uncertain.",
  "summary": "Eskom’s return to profitability and more than 460 days without load shedding raise questions about the urgency of government’s plan to separate its transmission assets. The restructuring should strengthen South Africa’s energy security, not weaken a utility that is finally showing signs of recovery.",
  "key_points": [
    "Eskom's profit after tax doubled to R30.3 billion",
    "Cash generation improved, diesel usage decreased",
    "Government's reform intentions may undermine gains"
  ],
  "editors_take": "Government's push for immediate transfer of Eskom's transmission grid ownership threatens to undermine the company's hard-won financial turnaround and stability, despite its improved performance and reduced debt reliance.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}