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2Zero50South Africa

Is Eskom Finally Turning the Corner?

By October 9, 2025No Comments5 min read

A closer look at the progress – and the risks – ahead

South Africa is finally seeing a glimmer of hope in the energy sector. For the first time in eight years, Eskom has reported a profit before tax of R23.9 billion. Alongside this, there’s been a notable drop in load-shedding: between 1 April and 18 September 2025, only 26 hours of power cuts were recorded. Even more impressively, there has been no load-shedding at all since 15 May 2025.

These milestones offer some relief—especially for farmers who have struggled with years of power outages that disrupted irrigation systems, cold storage, and production schedules. The truth, however, remains: This recovery might just come a little too late, seeing that the cost of renewable energy is already lower than what Eskom can offer…

But while the progress is encouraging, there are still serious risks beneath the surface that could derail this recovery. For those of us who rely on consistent, affordable electricity, two major concerns remain: load reduction and future tariff hikes.

  1. Load Reduction: A Different Kind of Problem

Most of us are familiar with load-shedding, where power cuts happen because there’s not enough electricity being generated. Load reduction, however, is different. It occurs when Eskom deliberately cuts power during peak hours in high-risk areas—not because of a supply issue, but because the distribution infrastructure simply can’t handle the demand.

This is often blamed on illegal connections that overload local transformers and damage equipment. According to Electricity Minister Kgosientsho Ramokgopa, this isn’t a generation issue—it’s a failure in infrastructure, worsened by poor maintenance and a lack of investment from municipalities.

“Load reduction is a failure at the level of Eskom and municipalities to provide sufficient infrastructure and capacity to accommodate load growth in particular areas.” – Ramokgopa

Municipalities play a major role in the issue. Many are financially crippled, unable to collect payment from residents and businesses. In total, municipalities owe Eskom over R100 billion, while struggling customers owe municipalities over R400 billion. These financial challenges are worsened by a struggling economy and rising electricity tariffs that many simply can’t afford.

The government acknowledges the seriousness of load reduction and has promised action. Eskom plans to step in and assist struggling municipalities by providing technical skills and support to upgrade local infrastructure.

“There are 1.5 million customers in South Africa that are subjected to load reduction and so, when we say there is no load-shedding, those people cannot relate to that.” – Ramokgopa

Farmers don’t need to be reminded of how damaging power instability is. Whether it’s cold rooms, irrigation pumps, or processing lines—an unreliable grid has real consequences. Eskom estimates it could take up to 18 months to resolve the issue, depending on how quickly municipalities and communities come to the table.

While we welcome the improvements and want to support Eskom’s progress, the reality is that uncertainty remains. This makes the case for own-generation solutions—such as solar—stronger than ever. Reducing reliance on the national grid is no longer just about cost-saving; it’s about ensuring business continuity and stability in the long term.

  1. Tariff Trajectory: What’s the Real Cost Ahead?

On 30 January 2025, NERSA approved Eskom’s multi-year tariff plan, limiting the increases Eskom had originally applied for. But on 2 July 2025, Eskom took NERSA to court, citing a R107 billion revenue shortfall between what it requested and what was approved.

To the surprise of many, NERSA quietly agreed to a R54 billion settlement—with no public consultation or transparency. This settlement will now be recovered from consumers over the next few years.

NERSA outlined the following approved increases on top of the original increases:

  • 2025/26: No additional increase (remains 12.74%)
  • 2026/27: Extra 3.4% increase (total increase: 8.76%)
  • 2027/28: Extra 2.64% increase (total increase: 8.83%)

This will bring Eskom an additional R25 billion in revenue over three years. The remaining R29 billion will be recovered in the next tariff cycle.

These increases come at a time when electricity prices in South Africa are already rising three times faster than inflation. The result? Higher operating costs for everyone—from households to large-scale farms. Rising energy costs drive up the price of goods, transport, and services, affecting every part of the agricultural value chain.

What has frustrated many is not just the cost, but the process. The settlement between Eskom and NERSA was finalised behind closed doors, with no opportunity for public input—despite the fact that it impacts every electricity user in the country.

An additional concern is the growing cost burden. Electricity tariffs have consistently increased year after year, placing added pressure on households, businesses, and especially high-usage sectors like agriculture. For commercial farmers, rising electricity costs directly impact profitability and long-term sustainability—making careful planning and energy efficiency more important than ever.

Final Thoughts

Yes, Eskom’s recent wins are encouraging, but they do not mean the challenges are behind us. For commercial farmers, the need for a reliable and affordable electricity supply remains critical. While Eskom works to address its issues, now is the time to explore your own energy solutions. Whether it’s solar, hybrid systems, or energy efficiency upgrades—investing in your own power is not just a backup plan, it’s a way to future-proof your farm.