The power utility made a profit after tax of 30.3 billion rand (USD 1.9 billion) in the year ended March, compared with a restated 14.0 billion rand a year earlier, thereby registering its first annual profit in eight years.

Eskom’s revenue rose 4.1%, reflecting a 12.7% average tariff increase, although a 6.2% decline in electricity sales volumes partly offset the gain. The venture also implemented rolling blackouts on just four days during the financial year, compared with 13 days a year earlier and a record 329 days in 2024.

Power cuts have emerged as one of the headwinds ⁠that have constrained Africa’s biggest economy for more than a decade. However, the latest data from the utility suggests the phenomenon becoming much less frequent.

Outgoing Chief Financial Officer Calib Cassim mentioned that weaker electricity sales and the idling of the Mozal aluminum smelter, which has been placed under care and maintenance after failing to reach a tariff agreement with Eskom, would weigh on results in the current financial year.

The utility’s gross debt stood at 356 billion rand at the end of March 2026, up from 327.7 billion rand a year earlier.

However, Cassim stated that unpaid municipal debt has remained a headache for the state-owned utility.

Municipalities and metropolitan areas account for more than 40% of Eskom’s sales.

“Municipal debt rose 17.9% to 111.6 billion rand and could climb to ⁠358 billion rand by the 2031 financial year unless decisive action is taken,” Eskom said.

As per Cassim, Eskom’s earnings would have been around 15 billion rand higher had it collected the 15.8 billion rand owed by municipalities, as revenue from ⁠non-paying municipalities is only recognised when the utility receives the cash.

“Eskom can be in a position to execute the capital requirements without the need of government support, but you have to solve the municipal debt,” he said.

Cassim, who has spent 24 years at Eskom, apart from serving the utility’s acting Group Chief Executive for a year, will retire during the financial ⁠year ending March 2027.

He played a key role in the utility’s operational recovery and ‌return ⁠to profitability. As per the reports, the utility is looking to appoint Cassim’s replacement before the end of ⁠the 2026 calendar year.

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