Eskom

Corporate brand

South Africa’s state-owned electricity utility, responsible for most of the country’s generation, transmission and distribution.

Last updated October 21, 2026

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Overview

Eskom is South Africa’s state-owned electricity public utility and one of the largest electricity producers in Africa. It was established in 1923 under the name Electricity Supply Commission, commonly abbreviated as ESCOM or EVKOM, following legislation intended to coordinate and expand electricity provision nationally. The organisation later adopted the name Eskom, formed from the English and Afrikaans abbreviations used for its predecessor. Eskom’s principal activities span electricity generation, transmission and distribution. Its generation fleet has historically been dominated by large coal-fired power stations, reflecting South Africa’s substantial coal resources and the country’s industrial development model. It also operates Koeberg Nuclear Power Station in the Western Cape, the only nuclear power station on the African continent, as well as major coal facilities including Matimba, Medupi, Kusile and Kendal. Eskom represents South Africa in the Southern African Power Pool and has historically supplied approximately 95% of the electricity consumed within South Africa, although the precise share varies by period and market conditions. The utility expanded rapidly during the second half of the twentieth century. Between 1960 and 1990, its installed generating capacity increased from approximately 4,000 megawatts to approximately 40,000 megawatts, while a national high-voltage transmission network was developed. Standardised large coal stations, sometimes described as six-pack stations because of their six generating units, enabled substantial economies of scale. This expansion supported mining, manufacturing and urbanisation but also created a highly centralised and carbon-intensive electricity system. After South Africa’s democratic transition in 1994, Eskom placed greater emphasis on connecting households that had previously lacked electricity and on supporting wider economic development. Electricity demand subsequently outpaced available capacity. National rolling blackouts, known locally as load shedding, began in January 2008 after earlier supply problems, including difficulties at Koeberg. Eskom responded with a major construction programme centred on Medupi and Kusile, but both projects experienced delays, cost overruns, technical problems and allegations of corruption. These difficulties contributed to recurring shortages and placed considerable pressure on the utility’s finances. Eskom became a central subject of South Africa’s state-capture and public-sector corruption debate during the administration of President Jacob Zuma. Governance failures, procurement concerns, coal-supply problems, maintenance backlogs, excessive staffing costs and weakening plant performance compounded the utility’s debt and reliability problems. In 2019, the government announced plans to reorganise Eskom into separate generation, transmission and distribution businesses under state ownership. The proposed restructuring was intended to improve accountability, attract investment, enable competition and strengthen security of supply while retaining public ownership of strategic electricity infrastructure. The company’s challenges have also had major environmental and social dimensions. Eskom’s coal fleet has made it one of South Africa’s largest sources of greenhouse-gas emissions and air pollution, including sulphur dioxide. At the 2021 United Nations climate conference, international partners announced financial support for South Africa’s transition away from coal towards cleaner energy. The transition is politically difficult because coal mining and coal-fired generation support significant employment and regional economies. Eskom remains a strategically important but financially and operationally stressed public utility. Its role is gradually being reshaped by restructuring, increased private and municipal generation, renewable-energy investment, regulatory reform and efforts to establish a more independent transmission-system function. Reliability has improved at some points since the severe shortages of 2023, but the utility’s long-term position continues to depend on plant performance, debt treatment, governance reform, new generation and the pace of South Africa’s energy transition.

History

Before Eskom was created, electricity supply in South Africa was fragmented among municipalities and private companies. Early municipal schemes included Kimberley’s electric street lighting in 1882 and Cape Town’s Graaff Electric Lighting Works in 1895. The Electricity Act of 1922 created the legal basis for a national electricity commission and enabled the South African Electricity Control Board to appoint Hendrik Johannes van der Bijl as chairman. Eskom was established in 1923 as the Electricity Supply Commission. The new organisation initially operated on a cost-recovery basis and raised capital through debentures and later state-guaranteed borrowing. Its early construction programme included coal-fired stations at Congella in Durban and Salt River in Cape Town, both completed in 1928. A 128-megawatt plant at Witbank, completed in 1935, served the mining industry and formed part of the country’s expanding industrial electricity system. In 1948 Eskom acquired the Victoria Falls and Transvaal Power Company, strengthening its national position. Post-war shortages also led it to negotiate electricity-saving arrangements with mining companies. From the 1960s through the 1990s, Eskom undertook a major expansion. Installed capacity grew from roughly 4,000 megawatts in 1960 to roughly 40,000 megawatts in 1990. The organisation developed a nationwide 400-kilovolt transmission network and built a series of large, standardised coal stations. These plants delivered comparatively low-cost bulk electricity and supported South Africa’s mining and manufacturing economy. In 1974, Eskom was instructed to begin work on Koeberg Nuclear Power Station, which was intended to supply the Cape region and support the government’s nuclear programme. The expansion placed pressure on Eskom’s finances and organisational model. During the 1970s, a government-appointed commission chaired by W. J. de Villiers recommended changes including tariff increases, international borrowing and abandonment of the utility’s strict no-profit objective. The workforce was reduced in the late 1980s. The organisation also changed its name in 1987 from the earlier ESCOM and EVKOM formulations to Eskom. Following the democratic transition in 1994, Eskom expanded household electrification and sought to provide affordable electricity for communities that had previously been underserved. A 1998 amendment increased the government’s influence over Eskom’s policy and investment decisions. During the late 1990s, proposed privatisation and uncertainty over future demand contributed to delays in approving major new capacity. A 1998 government white paper recommended separating generation and transmission, but the proposal was not implemented at that time. Supply problems became visible in the Western Cape in 2006, partly because of difficulties affecting Koeberg. In January 2008 Eskom introduced national rolling blackouts as reserve margins deteriorated. The utility then began a large expansion programme focused on Medupi and Kusile, two major coal-fired power projects. Their construction was marked by delays, technical difficulties, labour disputes, cost escalation and corruption allegations. The resulting shortage of dependable capacity contributed to repeated load shedding and worsening financial stress. Eskom’s governance crisis became particularly prominent during the Zuma administration. The utility was associated with state-capture allegations, disputed procurement, coal-supply controversies and weak oversight. In 2019 the government announced an unbundling plan intended to create separate generation, transmission and distribution entities while retaining state ownership. The same period brought renewed severe blackouts, and Eskom’s reliability problems became an important contributor to wider economic weakness. The crisis continued into the early 2020s. Demand temporarily fell during COVID-19 restrictions, but outages returned as generating units failed and maintenance needs accumulated. Winter 2023 saw some of the country’s most severe electricity interruptions, including Stage 6 load shedding and reported outages lasting many hours per day. Eskom also faced theft of infrastructure, sabotage allegations, coal availability problems and pressure from organised criminal activity. The utility’s future is linked to South Africa’s energy transition. Eskom’s coal fleet is a major source of national greenhouse-gas and air-pollution emissions, while coal mining remains economically important in several regions. International climate finance announced in 2021 was intended to support a managed transition towards renewable energy and other lower-carbon sources. At the same time, government restructuring seeks to improve the independence and accountability of transmission and system operations, encourage private generation and reduce Eskom’s monopoly. Eskom therefore remains central to South Africa’s electricity system even as its traditional vertically integrated model is being reconsidered.

2023
Severe Stage 6 outages occur
[1]Eskomen.wikipedia.org
South Africa experienced some of its most severe power interruptions, reflecting widespread generating-unit failures and limited reserves.
2021
Just Energy Transition Partnership is announced
[1]Eskomen.wikipedia.org
International partners announced financing support for South Africa’s transition from coal-intensive electricity towards cleaner energy.
2019
Government announces Eskom unbundling
[1]Eskomen.wikipedia.org
The government announced plans to separate Eskom’s generation, transmission and distribution functions under state ownership.
2008
National load shedding begins
[1]Eskomen.wikipedia.org
Eskom began scheduled rolling blackouts nationally after supply reserves became insufficient to meet demand.
1994
Electrification becomes a major post-apartheid priority
[1]Eskomen.wikipedia.org
Following South Africa’s democratic transition, Eskom expanded connections to previously underserved households and communities.
1987
The Eskom name is adopted
[1]Eskomen.wikipedia.org
The organisation replaced the earlier ESCOM and EVKOM naming with the unified name Eskom.
1974
Koeberg project begins
[1]Eskomen.wikipedia.org
Eskom was instructed to begin work on Koeberg Nuclear Power Station to supply the Cape region and support the national nuclear programme.
1948
Eskom acquires Victoria Falls and Transvaal Power Company
[1]Eskomen.wikipedia.org
The acquisition strengthened Eskom’s position in South Africa’s electricity sector and expanded its generating assets.
1928
First Eskom-built stations are completed
[1]Eskomen.wikipedia.org
The Congella and Salt River coal-fired power stations were completed as part of Eskom’s early expansion.
1923
Electricity Supply Commission is established
[1]Eskomen.wikipedia.org
Eskom’s predecessor was founded as the Electricity Supply Commission, known in English and Afrikaans by the abbreviations ESCOM and EVKOM.
1922
Electricity Act establishes the legal framework
[1]Eskomen.wikipedia.org
The Electricity Act provided the basis for a national electricity commission and enabled the appointment of Hendrik Johannes van der Bijl as chairman of the electricity control structure.

Products and positioning

South Africa’s dominant state-owned electricity utility and strategic national grid operator.

Electricity generation
Coal-fired electricity
Coal-fired generation has historically formed the core of Eskom’s electricity fleet. Large stations such as Matimba, Kendal, Medupi and Kusile supply bulk power to the national grid. The model provides dispatchable generation but exposes Eskom to coal-supply, maintenance, emissions and air-quality challenges.
Electricity generation
Nuclear electricity
Koeberg Nuclear Power Station supplies electricity to the Western Cape and is Eskom’s principal nuclear asset. It is notable as the only nuclear power station in Africa and provides firm generation within the national system.
Grid infrastructure
Electricity transmission
Eskom operates a high-voltage transmission network linking generating stations with distribution systems and large customers. Transmission and system-operation functions have become central to proposed reforms intended to create a more independent grid operator.
Utility distribution
Electricity distribution
Eskom distributes electricity to residential, commercial, industrial and public-sector customers in areas served by its distribution business. Distribution is one of the functions identified for organisational separation under the government’s restructuring programme.

Controversies

2020
Eskom and Deloitte reach R150 million settlement
Eskom said it reached an out-of-court settlement with Deloitte under which Deloitte would repay R150 million of the R207 million in fees it collected. The agreement stated there were technical irregularities in the procurement process and that investigations showed Deloitte was not involved in state capture or other forms of corruption.
Source
2019
Medupi and Kusile delays and cost overruns
The construction of the Medupi and Kusile power stations was affected by delays, technical problems, rising costs and corruption allegations, contributing to Eskom’s financial and reliability crisis.
Source
2019
Eskom sues Deloitte over fees and contract awards
Eskom took legal action against Deloitte, seeking to reclaim $14 million. Eskom alleged that Deloitte charged five times more than competitors and was awarded contracts improperly. Deloitte denied wrongdoing and said it would fight the claim in court.
Source
2017
State-capture and Gupta-related corruption allegations
Eskom became a major focus of allegations that politically connected individuals and the Gupta family influenced appointments, procurement and commercial decisions during the Zuma administration.
Source
1981
Assistant chief accountant embezzlement case
An Eskom assistant chief accountant was caught embezzling funds in one of the organisation’s early major financial scandals.
Source

2008Demand-side management
South Africa
Eskom promoted reduced consumption during peak periods and used scheduled load shedding to protect the stability of the electricity grid during shortages.
Outcome. The measures reduced demand in some periods but did not resolve the underlying generation deficit.
Source
1994Mass electrification programme
South Africa
After the democratic transition, Eskom expanded electricity connections to households and communities that had been excluded or underserved under the previous system.
Outcome. Electrification became a central public-policy function of the utility.
Source

Brand decisions

2019
Government approves Eskom unbundling directionStrategy
Background
Debt, poor reliability, governance problems and the need for clearer operational accountability led the government to seek structural reform.
Action taken
The government announced plans to separate generation, transmission and distribution into distinct state-owned entities.
Aftermath
The restructuring became a long-running national policy project intended to improve reliability, unlock investment and support competition.
Source
2016
Proposal to pursue a large nuclear expansionStrategy
Background
Eskom identified nuclear power as a possible response to South Africa’s long-term electricity shortage.
Action taken
The utility pursued planning and training related to a possible nuclear build programme, although affordability concerns later constrained the proposal.
Aftermath
In 2018, Eskom’s acting chief financial officer said the company could not afford a new nuclear build at that time.
Source
2008
Launch of a major generation expansion programmeStrategy
Background
National electricity demand had exceeded available generation and reserve margins, producing rolling blackouts.
Action taken
Eskom pursued large new coal-fired stations, especially Medupi and Kusile, alongside grid expansion and demand-management measures.
Aftermath
The programme added capacity but suffered from long delays, technical difficulties, cost escalation and governance controversies.
Source

Recent events

2026.10
Reported2026.11.02
Eskom CFO Calib Cassim retires[5]Eskom首席财务官Calib Cassim退休citizen.co.za
Eskom announced that Group Chief Financial Officer Calib Cassim retired after 24 years of service. He will continue in an acting capacity until his successor's appointment takes effect.
2026.09
Reported2026.11.02
Eskom reports a second consecutive profitable year[5]Eskom首席财务官Calib Cassim退休citizen.co.za
Eskom posted its second consecutive profitable year in September 2026, which the article describes as part of the utility's turnaround.
2021.12.20
Eskom executes separation of transmission division[6]Eskom执行输电部门分拆polity.org.za
Eskom said it had executed the separation of its transmission division by transferring it to its wholly owned subsidiary, the National Transmission Company South Africa. The transfer remained subject to conditions, including creditor consents.
Unconfirmed
Eskom sought court review of Nersa's rejection[7]Eskom就Nersa驳回申请寻求法院复核news24.com
Eskom initiated proceedings in the South Gauteng High Court to review Nersa's decision to reject its MYPD 5 revenue application.
2021.04.28
Eskom and Msunduzi Municipality enter active partnership[8]Eskom 与 Msunduzi 市政局建立积极合作伙伴关系polity.org.za
Eskom entered a three-year Active Partnership Agreement with Msunduzi Municipality, appointing Eskom as network maintenance services agent and tasking it with capacity building and skills transfer.
Unconfirmed
Reported2021.04.13
Eskom sells two non-core properties[9]Eskom出售两处非核心物业iol.co.za
Eskom sold two office buildings to South Africa’s Department of Human Settlements, Water and Sanitation for R76.1 million as part of its strategy to dispose of non-core property.
Unconfirmed
Court ruling allows Eskom to recover equity injections[10]法院裁决允许Eskom分阶段收回股权注资jacarandafm.com
The High Court set aside NERSA’s decision to deduct a R69 billion equity injection from Eskom’s allowable revenue, allowing phased recovery of the amount.
2020.05.13
Reported2020.05.13
Eskom launches free electricity awareness campaign[11]Eskom推出免费电力宣传活动citizen.co.za
Eskom launched a campaign to raise awareness of its Free Basic Electricity programme for indigent households.
2020.03.20
Reported2020.03.20
Eskom and Deloitte reach R150 million settlement[4]Eskom and Deloitte reach R150 million settlementiol.co.za
Eskom said it reached an out-of-court settlement with Deloitte under which Deloitte would repay R150 million of the R207 million in fees it collected. The agreement stated there were technical irregularities in the procurement process and that investigations showed Deloitte was not involved in state capture or other forms of corruption.
2020.01.22
Reported2020.01.22
Eskom appoints Sikonathi Mantshantsha as spokesperson[12]Eskom任命Sikonathi Mantshantsha为发言人citizen.co.za
Eskom announced the appointment of financial journalist Sikonathi Mantshantsha as its national spokesperson. He was due to begin the role on 1 February.

Sources17 sources

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