Eskom has reported an after-tax profit of R24.3bn for the first half of its 2026 financial year, supported by higher electricity tariffs and more stable plant performance, despite continued pressure from municipal arrears.
For the six months to end-September, profit before tax rose 41% to R32.5bn, while profit after tax increased 37%. Earnings before interest, taxes, depreciation, and amortisation (ebitda) grew 11% to R68.5bn, according to the interim results released on Friday. Eskom said the profit will be reinvested in infrastructure.
Operational performance improved during the period, with no load-shedding having been implemented since May 15.
Two major coal units returned to service during the period. Kusile unit 6 reached commercial operation, while Medupi unit 4 was restored after extended repairs. The additional capacity helped stabilise the generation fleet, though Eskom said maintenance backlogs and the age of several stations continue to pose reliability risks.
Group revenue rose 4% to R191.3bn, driven largely by a 12.74% regulatory tariff increase implemented from April 1. This was partly offset by a 3% decrease in total electricity sales.
Local sales fell 3%, while international sales increased 4%.
“Although electricity tariffs are still not fully adequate, the higher increase this year is helping move tariffs to more appropriate levels, positively impacting our financial sustainability,” said CFO Calib Cassim.
“The establishment of a predictable and reliable long-term tariff path and suitable tariff structures that balance customer affordability with Eskom’s financial sustainability is a key priority to ensure the sustainability of the electricity industry and allow our customers to better plan for the long-term,” Cassim said. ”With the support of the minister of electricity and energy, we are engaging intensively with Nersa and other stakeholders on establishing a predictable long-term tariff outlook."
Municipal debt rose to R105bn by the end of September, despite 71 municipalities participating in a debt-relief programme. Eskom said more than 85% of these municipalities are failing to pay their current electricity accounts on time, placing sustained pressure on cashflow.
In the recent medium-term budget policy statement, finance minister Enoch Godongwana outlined steps to tackle mounting municipal arrears owed to Eskom. As an interim solution, the cabinet has approved the use of Eskom’s distribution agency agreements for defaulting municipalities.
Under these agreements, Eskom will temporarily manage municipal electricity services, assist with customer collections, provide skilled personnel, and support initiatives to curb energy losses and set appropriate tariffs. The plan also includes measures to help municipalities boost revenue, such as rolling out smart meters, while the National Treasury pursues longer-term reforms to strengthen the local government fiscal framework.
“Eskom stabilising its financial position and holding the necessary cash balances is essential for providing the financial headroom for strategic planning and execution,” said group CE Dan Marokane.
”This will facilitate investment in generation plant and network maintenance, emission reduction projects, and network expansion to improve grid reliability and increase grid connection capacity. These investments are critical to support sustainable operational performance, enable the energy transition and ensure security of supply as Eskom continues to build its future investment case."
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