Eskom’s board has been tasked with lowering electricity costs and improving reliability as government shifts its focus towards easing household pressure and supporting jobs nationwide sustainably.
Electricity and Energy Minister Kgosientsho Ramokgopa has placed affordability at the centre of Eskom’s next phase, arguing that improved generation performance must now translate into better service for the people and businesses that depend on electricity.
The direction represents a shift from the immediate battle to stabilise electricity supply towards the longer-term challenge of ensuring households and businesses can access dependable power without repeated large tariff increases.
Ramokgopa said Eskom must be capable of fulfilling its public mandate without depending on repeated government financial support or sustained double-digit electricity tariff increases as a business model.
That challenge has direct consequences for households already balancing electricity costs with food, transport, housing and other essential expenses.
Government also wants Free Basic Electricity to reach qualifying households more effectively, while smart meters are expected to improve customer service, billing and the management of distribution networks.
Ramokgopa said customer care must become central to Eskom’s future strategy, including dependable supply, accurate accounts and faster resolution of complaints.
For consumers, those improvements matter because the social impact of electricity extends beyond whether the lights stay on.
Reliable power affects household security, studying, small businesses, healthcare services, food storage and the ability of communities to participate in an increasingly digital economy.
Electricity also remains closely connected to employment and investment.
Ramokgopa said reliable and affordable electricity supports investment and jobs, while Eskom’s future plans will need to account for demand from mining, manufacturing and emerging industries such as data centres.
The board has been instructed to develop a single Eskom roadmap covering the next three, five and 10 years, including the utility’s future generation mix, public responsibilities, commercial position and investment requirements.
That plan will also have to accommodate a changing electricity market in which Eskom operates alongside new generators and electricity traders.
At the same time, the utility must invest in the infrastructure required to connect new electricity supply to homes and businesses.
Government has placed transmission expansion among Eskom’s priorities and wants the scale of future grid investment to create opportunities for South African manufacturers, suppliers and skills development.
That creates a wider economic opportunity.
Investment in electricity infrastructure can support engineering, construction, manufacturing, maintenance and technical skills while enabling other businesses to expand in areas where electricity constraints previously limited growth.
Eskom Green has also been instructed to turn its strategy into a pipeline of projects, with engagement around approximately 2GW of renewable capacity identified as an early step.
The utility must simultaneously assess the future of its existing generation fleet, including reducing emissions from coal-fired power stations, repurposing sites and determining its longer-term role in gas and nuclear energy.
Municipal debt remains another major challenge because unpaid electricity accounts place pressure on electricity supply and future network investment.
The Department of Electricity and Energy is expected to work with National Treasury, Cooperative Governance and Traditional Affairs and the South African Local Government Association to improve payment discipline and develop more sustainable supply arrangements.
The board has also been instructed to reduce system losses and revenue leakage, improve value from procurement and maintenance and strengthen financial controls.
Artificial intelligence is expected to become part of that effort, initially helping Eskom address technical losses, forecasting and grid management before being expanded into other areas of the business.
Mteto Nyati will continue serving as Eskom board chairperson, providing leadership continuity as the utility moves from its generation recovery phase towards what government is describing as Eskom 2.0.
For households, however, the most important test of this next phase will be practical.
A stronger Eskom will need to mean electricity that is not only available, but increasingly affordable, accurately billed and delivered through a system capable of supporting households, businesses and employment.
