08/10/2025
Summary of Eskom's Financial Turnaround Claims
South African power utility Eskom reported a pre-tax profit of R23.9 billion for the 2025 financial year—its first since 2017, reversing a R25.5 billion loss from the prior year. The company attributed this to an improved EBITDA margin (29.05%), a 12.74% tariff hike, and a 14% drop in primary energy costs, driven by better coal plant performance and R16.3 billion in diesel savings from reduced use of costly Open-Cycle Gas Turbines (OCGT). CFO Calib Cassim hailed these as results of the firm's "recovery strategies" and operational improvements.
However, energy expert Professor Anton Eberhard, from the University of Cape Town's Power Futures Lab, critiqued the narrative, stating Eskom would have posted losses without a R64 billion government bailout, half of which covered interest payments the utility couldn't afford. He noted ongoing issues, including a planned R80 billion bailout next year as part of a R240 billion debt relief package, which would bring total government support since 2008 to nearly R500 billion—funds he argues should be prioritized for social infrastructure.
