Eskom Continues Charging More for Selling Less

Statement by Kevin Mileham MP – DA Spokesperson on Electricity and Energy:

Eskom’s financial recovery is welcome, but we should not confuse a better set of numbers with a sustainable business model.

For the year to March 2026, Eskom reported a R30.3 billion profit. It also benefited from an R80 billion debt-relief payment from the state, while its standard tariff increased by 12.74%. Yet electricity sales fell by 6.2% to 178 TWh, as industrial demand weakened and more customers generated their own power or used less.

This should concern every electricity consumer. Eskom is selling less electricity but earning more from higher tariffs, and now proposes a further 8.83% increase for direct customers and 8.84% for municipalities in 2027/28.

The DA recognises Eskom’s genuine operational improvements, including better plant performance, lower diesel use and stronger cost control. But these gains do not remove the underlying problem which is a shrinking sales base, high debt, rising municipal arrears and tariffs rising faster than many households and businesses can absorb.

Eskom’s debt securities and borrowings stood at R356 billion at the end of March before falling further after debt repayment. That improvement has been materially assisted by taxpayer-funded debt relief. Municipal arrears, meanwhile, have now climbed to R122.5 billion. Moving more municipal revenue directly to Eskom may improve collection, but it does not fix the economics of the electricity system.

Governance also remains unfinished. Eskom again received a qualified audit opinion, because its auditors could not confirm that irregular expenditure was fully reported. Despite progress in closing previous audit findings, a qualified audit remains a warning that financial controls are not yet where they need to be.

The DA will not support a model in which Eskom’s financial sustainability rests on three things: taxpayer-funded debt relief, above-inflation tariff increases and ever-greater claims on municipal revenue.

Before Parliament agrees to channel more municipal funds to Eskom, the utility must keep cutting costs, improve its audit outcomes and show that future tariff increases are based on efficient costs, not on squeezing more revenue from a shrinking customer base.

Eskom should be financially sustainable because it is efficient, competitive and well governed. South Africans cannot be expected to keep paying more for less electricity sold.