Posts

Municipal debt, theft could undermine Eskom’s recovery

Eskom is again warning that municipal debt and electricity theft could undermine its nascent recovery. Terence Creamer unpacks this and some of the other key messages emerging from the State-owned entity’s results.  
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Classifying Eskom’s coal fuel costs as fixed would damage SAWEM

Allowing Eskom Generation to classify the primary energy used by its coal power stations as fixed costs will undermine the objective of using the upcoming launch of the South African Wholesale Electricity Market (SAWEM) to usher in a competitive supply industry. This stark warning was delivered by Jenna Harris, an experienced energy professional, who was also founder and the former CEO of a licensed electricity trader, during recent regulatory hearings into the National Transmission Company South Africa’s (NTCSA’s) application for a Market Operator licence.
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Partnership creates profitable biomass solutions

The strategic partnership between energy and environmental solutions provider John Thompson, a division of electromechanical equipment manufacturer and distributor ACTOM, and biomass energy projects developer and supplier Berkeley Energy Corporate Solutions (BECS), will deliver profitable biomass energy solutions for African industries. Together, the companies aim to accelerate the deployment of reliable, renewable steam solutions to industrial clients across Africa.
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Bala appointed as NTCSA CEO as decision on ‘end state’ nears

Eskom veteran Monde Bala has been appointed as CEO of the National Transmission Company South Africa (NTCSA), effective October 1, having served in the position on an interim basis for the past two months. Bala took over from Segomoco Scheepers, who played a central role during the separation of the NTCSA from the rest of Eskom, and who will retire from the State-owned entity at the end of December.
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Eskom outlines R320bn capex plan, as it signals 2028 return to capital markets

Having finally announced the completion at the end of September of its generation build programme, which included two mega coal projects that ran years behind schedule and tens of billions over budget, Eskom has outlined plans for a R320-billion investment programme for the coming five years. The programme includes greenfield generation projects, which Eskom has been disallowed from pursuing since 2023 without the explicit permission of the Finance Minister as part of the terms of a R230-billion debt-relief package, under which it is still trading.
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Eskom warns that municipal debt could climb to R300bn by 2030

Eskom CFO Calib Cassim warns that municipal arrear debt owing to Eskom could exceed R300-billion by 2030, while once again highlighting the failure of the current National Treasury initiative to arrest the crisis. Cassim, who will retire from Eskom in 2026, reported at the group’s results presentation that debt owed to Eskom by municipalities had increased by 27% to R94.6-billion in the year to March 31, 2025, and had since climbed to above R103-billion.
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Eskom now modelling single-digit tariff hikes, Marokane reports

Eskom CEO Dan Marokane reports that the State-owned company is being geared towards receiving no more than single-digit tariff increases in future in recognition of the affordability pressures being experienced by its business and residential customers. “We have it very loud and clear that South Africa cannot afford high prices of electricity, and so we have modelled the business on a single-digit tariff increase going forward.
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Eskom stays legal case against traders, says it has faith in Nersa process

Eskom has announced a stay in its legal action to have the regulator’s decision to licence five electricity traders in 2024 reviewed and set aside. In July, Eskom launched its long-threatened legal review of the regulator’s decision to grant trading licences to Green Electron Market, CBI Electric Apollo, GreenCo Power Services (which also received a cross-border licence), Discovery Green and NOA Group Trading.
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Eskom records first full-year profit in eight years

State-owned power utility Eskom on Tuesday reported its first full-year profit in eight years thanks to government debt relief, higher tariffs and a sharp reduction in power cuts. Eskom made profit after tax of R16-billion in the year to the end of March 2025, compared to a R55-billion loss a year earlier, its annual report showed.
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SPS, B2Gold launch first solar wheeling project under Namibia’s MSB programme

Sustainable Power Solutions (SPS), in partnership with B2Gold Namibia, the Oelofse family and Fortitude, have commissioned Namibia’s first solar wheeling project under NamPower’s Modified Single Buyer (MSB) Programme, which allows private independent power producers (IPPs) to sell electricity directly to large customers using the national grid. SPS funds, develops, and operates solar PV and battery storage projects, primarily in the commercial and industrial sector in sub-Saharan Africa.
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