Energy Minister Kgosientso Ramkgoppa announced on Friday that Mtheto Nyati will continue to serve as the Chairman of the Eskom board of directors. This decision resolves an issue that has hung over the energy company since the publication of its annual results last month.
Nyati's three-year term as chairman was due to expire in October. He previously held positions as CEO of MTN South Africa and Altron. Nyati joined the Eskom board after its reorganization in October 2022, when the company reached record levels of power outages that year. He became chairman a year later, after Mpho Makwana resigned.
Ramkgoppa stated in his Friday announcement: 'I thank Dr. Nyati for his leadership during a difficult period for Eskom. The improvement in the company's performance reflects the work of its board of directors, management, and employees. His continued service will help carry this work into the next phase of Eskom, where the measure of success will be sustainable energy security, a financially stable company, and improved service for South Africans.'
The minister used this announcement to outline shareholder expectations regarding what he termed 'Eskom 2.0'—the next phase of the company's operation, as the generation recovery plan increased the efficiency of the existing power plant fleet.
Requirements for Future Eskom
The board of directors must develop a unified roadmap for Eskom for the next three, five, and ten years, defining its public obligations, future energy balance, commercial position, and necessary investments to maintain them.
Abandonment of Bailout Operations
Specifically, the statement noted that Eskom must fulfill its tasks 'without relying on further financial support or constant double-digit tariff increases as its business model.' Nyati had made similar remarks during the results presentation last month, asserting that 'tariff increases alone are not a strategy.'
Eskom more than doubled its net profit after tax to 30.3 billion rand for the year ending March 31, 2026, achieving its second consecutive annual profit after eight years of losses. Net debt decreased by 45.3 billion rand to 313.3 billion rand.
In line with the Integrated Resource Plan 2025—the government's long-term plan for new electricity generation sources—Eskom must conduct the technical and financial work necessary for the board to make decisions about the future of its fleet. This includes reducing emissions from existing coal stations, assessing coal emission reduction technologies, repurposing and modernizing power station sites, and defining Eskom's role in gas and nuclear energy.
Eskom Green's business, which deals with renewable energy, must transform its approved strategy into a 'credible project portfolio.' The minister noted that planned engagement with potential partners to secure about 2 GW of renewable capacity is the first step.
It is expected that Eskom and the South African National Transmission Company, its transmission subsidiary, will promote a 'programmable network program,' including an independent transmission projects program, under which private companies finance and build transmission lines. The minister insists that these expenditures support producers, suppliers, and skills development in South Africa.
Eskom's growth strategy must also extend to South Africa, with the development of cross-border interconnectors and electricity trading in collaboration with regional partners and sponsors such as the African Development Bank, the Industrial Development Corporation, and the African Development Bank.
Data Centers and Municipal Debt
Ramkgoppa called for strengthening the commercial and customer strategy. Mining and industry remain important sources of demand, but data centers require a 'targeted approach to reliable supply, suitable locations, network bandwidth, and long-term contracts,' according to him.
Municipal debt continues to put pressure on supply and network investments. The ministry will work with the national treasury, the department of cooperative governance and traditional affairs, and the Association of Local Municipalities of South Africa to ensure payment discipline. In the last financial year, Eskom's outstanding municipal debt grew by 17.9% to 111.6 billion rand.
The statement also mentioned that smart metering can improve service and strengthen revenue collection. The board also needs to reduce system losses and revenue leakage, achieve better returns from procurement, maintenance, and project implementation, and continue strengthening financial control. The goal is to obtain an unqualified audit opinion without material findings; Deloitte issued a qualified opinion on Eskom's latest annual financial statements, finding that the company had not fully reflected irregular expenses.
Eskom must also expand the use of artificial intelligence, starting with technical losses, forecasting, and network management. The statement does not specify when the board should present its roadmap.
