Eskom’s promise to keep tariff increases in the “single digits” offers little comfort to consumers facing an 8.83% increase in 2027/28, almost three times the Reserve Bank’s 3% inflation target.
While electricity becomes less affordable, Eskom’s own costs continue to rise. Direct employment cost per employee increased by roughly 24% between 2022/23 and 2024/25. In 2025/26, average remuneration rose by a further 7%, while short-term incentive obligations increased to R5.1 billion. Executive and board remuneration also increased materially.
Eskom’s improved operational performance is welcome, but its reported profits cannot be separated from the substantial debt relief and financial support provided by taxpayers.
At the same time, electricity sales fell by 6.2% as customers reduced consumption and increased self-generation.
That is the utility death spiral Eskom should be avoiding: higher tariffs drive customers away, leaving fewer consumers to carry more of the fixed costs.
Eskom must now account publicly for how it intends to contain its employment, incentive and executive remuneration costs, and show what concrete savings will be passed through to consumers.
It cannot keep asking households and businesses to fund rising internal costs through ever-higher electricity prices.