The Congress of South African Trade Unions (COSATU) congratulates the tireless efforts of Eskom’s employees on their annual performance milestones. Due to the dedication of Eskom’s staff, this once collapsing state-owned enterprise has shown a remarkable turnaround over the past few years. 

We are heartened that the number of Eskom customers experiencing load reduction has shrunk by 65% from 1.69 million customers by 1.099 million customers and five provinces lifted from the load reduction schedule. Two more provinces are due to exit load reduction by October with the last two due by 2027. 

South Africa has now experienced 420 days without load shedding with diesel usage plummeting by 84.65% from R4.86 billion to R746 million. Energy availability has improved by 9.64% since 2025 and unplanned capacity losses have declined by 50%.

Key to ensuring that Eskom continues along this recovery path and restoring its role as the engine of South Africa’s economy and in particular industrial growth, is to ensure that the existential threat posed by municipal debt, currently at a massive R120 billion and growing by an alarming R20 billion annually, is decisively dealt with. No company, state or private, can survive if half of its customers fail to pay for services provided, in this case electricity. 

Eskom’s dangerous dependence upon tariff hikes far above inflation is a direct result of these huge financial losses. These tariff hikes threaten the survival of the mining industry and in particular smelters, and thus thousands of mineworkers’ jobs. Working- and middle-class families’ wages are being bled dry by these unsustainable electricity tariff hikes. Key to tackling this crisis is to ensure that all consumers pay for electricity consumed. Rolling out smart meters is key to this. Progress installing 1.861 million smart meters is commendable but much more must be done. Eskom and municipal workers disconnecting illegal connections must be protected by law enforcement and culprits dealt with. Ensuring that all electricity consumed is paid for will enable Eskom to reduce the price of electricity and increase free electricity for indigent homes. 

COSATU remains deeply opposed to Eskom’s unbundling, in particular the danger it poses to Eskom’s continued recovery. We cannot afford disruptions or distractions, more so when the economy remains so fragile.

The heroic efforts of Eskom’s employees to end load shedding and ensure the economy has reliable electricity has provided invaluable space for the economy to begin its recovery journey.  Their dedication has helped save millions of jobs. 

Eskom’s turnaround dispels the prophets of doom and disciples of privatisation who once wrote Eskom’s obituary. It shows beyond doubt that the state can be fixed and society and the economy will reap its rewards. It shows the value of investing in staff, paying a living wage, rewarding outstanding performance and building sound relationships between management and workers. 

We commend the National Union of Mineworkers and sister unions at Eskom as well as management led by CEO Dan Marokane, for their principled leadership in delivering this outstanding feat. This is one of the most important achievements of the African National Congress led administrations. The nation is indebted to their achievements.

Issued by COSATU

Matthew Parks (COSATU Parliamentary Coordinator)

Mobile: 082 785 0687

Email: matthew@cosatu.org.za