Eskom’s return to profitability is proof that the embattled utility can be turned around, but government’s restructuring plans risk undermining its recovery unless the financial and operational consequences are made public, posits the writer.
Eskom survived state capture, managerial vandalism and political inteference that condemned South Africa to years of load shedding. It may now have to survive reform.
Its latest results are the clearest evidence yet that the recovery is real. Profit after tax more than doubled to R30.3 billion, from a restated R14 billion. Adjusted EBITDA rose to R108.6 billion. Cash generation strengthened, expensive diesel use fell and plant availability improved to 65.16%. By late August, Eskom reported more than 460 consecutive days without load shedding.
This second consecutive profit after eight years of losses proves that focused leadership, disciplined maintenance and managerial space can still revive a battered public institution.
Yet just as Eskom has begun to stand, government appears determined to remove one of the legs beneath it.
