Financial overview 2026 PERFORMANCE REPORT Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Our value creation journey OUR REPORTING SUITE 1 FINANCIAL 3 OVERVIEW Condensed annual financial statements and commentary 48 1 TRANSFORMING ENERGY TO CREATE VALUE Enhancing financial sustainability 52 Who we are and what we do 2 SUPPLEMENTARY How we deliver value 8 4 INFORMATION PERFORMANCE INDICATORS Throughout this integrated report, performance against target is indicated as follows: Met or exceeded target Abbreviations 66 Almost met target (within a 5% threshold) 2 PERFORMANCE OVERVIEW Glossary of terms 68 Did not meet target Statistical tables: technical and non-technical 70 SC The key performance indicator is included in our annual compact with the shareholder Plant information 75 Growing our people 11 Customer information 78 Strengthening our infrastructure 19 Environmental implications of using Interacting with the environment 32 or saving electricity 79 Sustaining communities 40 Corporate information 80 ii ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Welcome to Eskom’s FY2026 reporting suite REPORTING PERIOD FIVE REPORTS, ONE STORY 1 April 2025 to 31 March 2026 AVAILABLE AT We present a cohesive view of our performance, prospects and stewardship www.eskom.co.za/investors/integrated-results ONE STORY THROUGH FIVE DIFFERENT LENSES Each report focuses on a distinct dimension of our performance. Together, these five reports give a balanced, credible account of Eskom’s performance across strategic, financial, operational, governance and sustainability dimensions INTEGRATED ANNUAL FINANCIAL SUSTAINABILITY GOVERNANCE AND PERFORMANCE REPORT STATEMENTS REPORT REMUNERATION REPORT [NEW] REPORT [NEW] Our strategy and value creation story Our audited financial position, performance Our environmental, social and governance How we are governed and how we reward A detailed view of operational and and outlook and cash flows (ESG) impacts our people financial performance WHO IT’S FOR: The people of South WHO IT’S FOR: Shareholder, investors, WHO IT’S FOR: Stakeholders with a WHO IT’S FOR: Shareholder, providers of WHO IT’S FOR: Shareholder, analysts, Africa, providers of financial capital and our creditors, regulators, analysts, employees specific interest in our ESG performance financial capital, regulators and employees regulators and operationally focused broader stakeholder base and the public stakeholders GUIDED BY: Global Reporting Initiative, GUIDED BY: Companies Act, King IV and GUIDED BY: Integrated Reporting GUIDED BY: IFRS Accounting Standards, United Nations Sustainable Development PFMA, with pay-gap disclosures aligned GUIDED BY: PFMA and National Treasury Framework, Companies Act, PFMA, King IV; the Companies Act and PFMA Goals (SDGs), IFRS S2 and Eskom’s internal to the Companies Amendment Act’s regulations, the shareholder compact and with ISSB standards IFRS S1 and S2 under ESG framework requirements internal KPI measurement specifications assessment MATERIALITY LENS: Financial materiality: information that could influence MATERIALITY LENS: Impact materiality: MATERIALITY LENS: Matters material to MATERIALITY LENS: Operational and MATERIALITY LENS: Double materiality: users’ decisions our most significant effects on the economy, leadership effectiveness, ethical conduct, fair financial materiality - matters significant to financial and impact environment and people remuneration and long-term value creation delivering on our mandate ASSURANCE: Audited by Deloitte & ASSURANCE: Internal Audit verified the Touche on behalf of the Auditor-General of ASSURANCE: Internal Audit verified the ASSURANCE: Internal Audit verified the ASSURANCE: Internal Audit verified the disclosures; Deloitte & Touche provided South Africa disclosures; Deloitte & Touche provided disclosures; Deloitte & Touche reviewed disclosures; Deloitte & Touche provided reasonable assurance on selected KPIs and reasonable assurance on selected KPIs and consistency across the reporting suite reasonable assurance on selected KPIs and reviewed consistency across the reporting reviewed consistency across the reporting reviewed consistency across the reporting suite suite suite IF YOU ONLY READ ONE THING ... STRATEGY, VALUE CREATION AND GOVERNANCE, ETHICS AND SUSTAINABILITY AND ESG ASSURANCE AND REPORTING OUTLOOK LEADERSHIP Sustainability report QUALITY Start with our integrated report Integrated report Governance and remuneration report Environmental performance, including Integrated report In one place, it sets out our strategy, the Our strategy, business model and material Board composition, committees and emissions and water Board responsibility and signoff matters most material to Eskom, how we have matters effectiveness Social impact, community investment and Independent assurance report on selected KPIs performed against them and where we are Our operating context, risks and opportunities Ethics, compliance and combined assurance just energy transition Annual financial statements heading. It points you to the rest of the suite The C-suite’s perspectives King IV application and governance outcomes Condensed annual financial statements and Climate-related disclosures aligned with Independent auditor’s report when you want to go deeper commentary REMUNERATION AND BENEFITS IFRS S2 Contribution to the UN Sustainable OPERATIONAL AND FINANCIAL WHERE TO FIND WHAT Annual financial statements Governance and remuneration report Development Goals PERFORMANCE A quick guide to Eskom’s FY2026 reporting Our financial position, performance and cash Remuneration philosophy and policy Performance report suite, organised by the topics that matter most flows Executive and non-executive director Integrated report Performance overview to our stakeholders. remuneration 1 Companies Pay-gap disclosure under the Carbon footprint Financial ESKOM SOC LTD Performance report 2026 overview HOLDINGS Statistical information Amendment Act Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Who we are and what we do OUR MANDATE, VISION AND PURPOSE Eskom has a dual commercial and social mandate to drive both economic growth and socio-economic development. This mandate is meant to position Eskom as a reliable and financially sustainable electricity provider, while contributing to South Africa's economy and enabling a responsible transition to a lower-carbon future. The mandate is set out in our memorandum of incorporation (MOI), which is prepared by the Board and accepted by our shareholder. WHO WE ARE Eskom Holdings SOC Ltd is South Africa’s national electricity utility, supplying power by generating, transmitting and distributing electricity, also purchasing power from independent producers (IPPs) and trading regionally. Our commercial mandate underpins national energy security and supports economic growth, with our country-wide operations touching the daily lives of most South Africans. We are also pursuing a transition to a lower carbon future within a more competitive, unbundled electricity market. Our social mandate makes us a key contributor to national development, including direct and indirect job creation, workforce transformation, skills development, broad-based black economic empowerment (B-BBEE) and rural electrification. Having connected over six million homes since 1991, we continue to work towards achieving universal access to electricity, unlocking economic opportunity 1 and improving living standards of all South Africans. Our work also supports several United Nations Sustainable Development Goals (SDGs). SR Our sustainability report, available online at www. eskom.co.za/investors/integrated-results/ explains how we affect the SDGs 2 Who we are and what we do 8 How we deliver value 2 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Who we are and what we do continued Our vision and purpose flow from this mandate. Four strategic objectives, aligned to the shareholder's five strategic priorities, guide how we deliver on it. The reverse is equally true: when we cannot fulfil our mandate, the impact on the economy and on consumers is significant. We have Lower the cost of doing business in South Africa; enabling inclusive economic growth and providing security and stability of seen in the recent past how an Eskom that is not financially sustainable Eskom’s mandate weighs heavily on the national budget, the sovereign credit rating and electricity supply and provide electricity in an efficient and financially sustainable manner. borrowing costs, ultimately reducing resources available for other priorities. Encouragingly, our first credit rating upgrade in over a decade, from B to B+ by S&P Global in FY2026, was cited by ratings agencies as Our a factor in South Africa's own sovereign upgrade by contributing to a mandate stronger economic outlook. Early in FY2027, Fitch also upgraded both the sovereign and Eskom’s credit ratings. Our vision Our purpose Sustainable power for a better future Powering growth sustainably Our finance strategy prioritises pursuing an adequate tariff path that balances affordability with our financial sustainability, optimising Shareholder's priorities costs, deleveraging the balance sheet with Government support, and collaborating on an enduring solution to address the arrear municipal Achieving universal access, Qualitatively transform energy Attain sovereign and regional Drive industrialisation and Assert SA, continental and debt challenge. Debt relief support alone will not resolve the underlying availability, affordability demographical; elevate role of and quality energy security lead innovation women and youth global energy leadership structural issues – cash from operations must be sufficient to meet debt service obligations and fund the investment needed to sustain and expand Eskom strategic objectives infrastructure, with a standalone investment-grade credit rating being targeted in the medium term. Pursue financial and Position Eskom as energy Modernise our Drive a just and inclusive operational sustainability sector leader power ecosystem energy transition (Fix the current business) (Prepare for competitiveness) (Leverage technology) (Transition responsibly) PR Our business model, detailed from page 8, shows how we convert inputs into electricity to meet customer demand, and how we impact the six • Recover and sustain EAF to • Unbundle Eskom divisions in line • Accelerate TDP execution • Accelerate new capacity capitals 70% in the long term with the revised unbundling strategy including alternative funding models projects (i.e., Gas, RE, Nuclear, • Drive interventions to achieve • Foster a competitive and open • Build a future-ready and resilient Pumped Storage) In delivering our mandate, we engage a broad set of stakeholders: environmental compliance electricity market distribution network including • Intensify repowering and the Department of Electricity and Energy (DEE) as our shareholder • Implement innovative solutions • Launch enhanced business smart meters and microgrids rollout repurposing of stations representative, other government departments and regulators, lenders to reduce municipal arrear models and embed customer- • Increase flexibility of generation (e.g., Komati, Hendrina, Arnot) and investors, employees and organised labour, customers, suppliers and debt and energy losses centricity to stimulate sales plant • Explore clean coal civil society. The general public is, indirectly, our ultimate shareholder. • Intensify cost optimisation and secure market share • Upskill and reskill workforce for technologies and solutions and enhance revenue • Advance unbundled and dynamic digital and clean energy future • Stimulate electrification to • Address fraud, corruption tariffs for enhanced market increase access and PR See "External governance and oversight" on page 5 for the departments and criminality positioning drive decarbonisation with oversight over our operations (DERs, eMobility) Embed digitalisation and AI integration across Entrench a high-performance and ethical culture Enhance Eskom’s brand and reputation the value chain Customer Zero Harm Integrity Innovation Sinobuntu Excellence satisfaction KEY STAKEHOLDERS SIX CAPITALS Business and suppliers Employees Financial capital Manufactured capital General public and customers Investors Natural capital Human capital Media Regulators Parliamentary Committees Government Social and relationship capital Intellectual capital 3 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Who we are and what we do continued OVERVIEW OF THE GROUP ESKOM HOLDINGS SOC LTD Board of Directors Exco and Committees REGULATORS Audit Capital NERSA Business Operations Performance Information and Technology SUBSIDIARIES National Nuclear Regulator Governance and Strategy Nuclear Management National Transmission Company South Africa SOC Ltd Human Capital and Remuneration Operating Eskom Enterprises SOC Ltd Investment and Finance Regulation, Policy and Economics Divisional Eskom Rotek Industries SOC Ltd Risk Risk and Sustainability boards Social, Ethics and Sustainability Tender Escap SOC Ltd SHAREHOLDER AND POLICY Turnaround Eskom Finance Company SOC Ltd MINISTRY Eskom Development Foundation NPC Department of Electricity and Energy Line divisions National Electricity Distribution Company Generation Distribution of South Africa SOC Ltd (not trading) OVERSIGHT MINISTRIES Strategic functions FUTURE SUBSIDIARIES Strategy & Planning Risk and Sustainability RT&D Internal Audit Generation Company National Treasury Group Investigations & Security Company Secretariat Eskom Green (renewables company) Department of Forestry, Fisheries and the Environment Department of Water and Sanitation Support functions Finance Human Resources Legal, Compliance & Regulation Strategic Delivery Group Technology & Information Renewables Group Capital Corporate Services Eskom Holdings SOC Ltd is the parent company Our key subsidiaries are: • Eskom Finance Company SOC Ltd (EFC) – provides Each subsidiary has its own board, with the Eskom of the group, headquartered in Johannesburg with • National Transmission Company South Africa SOC Ltd housing and other loans to employees. The sale of Board acting as shareholder representative. In administrative and technical offices in most major (NTCSA) – trading since 1 July 2024 and currently the loan book to African Bank has been abandoned response to a request by the Board, the Minister of centres. Most of the electricity business still resides in functioning as the interim Transmission System as the conditions precedent to the sale agreement DEE appointed independent non-executive directors the holding company, which also holds investments in Operator (TSO) while the options are being concluded in FY2025 were not fulfilled to the boards of EE, ERI, Escap and Esdef during the several subsidiaries, some of which provide strategic considered to establish an independent TSO • Eskom Development Foundation NPC (Esdef ) – past year, to diversify the skills mix of those boards by services to the group and its employees. The holding outside Eskom a non-profit company delivering our corporate complementing the technical and business expertise company remains the primary contributor to group social investment (CSI) programmes provided by employee directors, thereby enhancing • Eskom Enterprises SOC Ltd (EE) – an investment performance. oversight of the subsidiaries. holding company whose main subsidiary, Eskom • National Distribution Company of South Africa SOC Rotek Industries SOC Ltd (ERI), provides technical Ltd (NEDCSA) – set up to house the Distribution AFS N  ote 7 of the consolidated annual financial support and plant maintenance to the electricity business once separated; not yet operational AFS F ull details of Eskom's equity-accounted statements provides segment disclosure of Eskom’s business investees and subsidiaries at 31 March 2026 are in generation, transmission, distribution and corporate • Escap SOC Ltd – a wholly owned insurer that notes 11 and 12 of the consolidated annual financial activities manages and insures business risks across the group statements 4 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Who we are and what we do continued INTERNAL GOVERNANCE STRUCTURES Our governance framework rests on a clear division EXTERNAL GOVERNANCE AND OVERSIGHT The electricity supply industry is regulated by the Eskom is committed to strong corporate governance of roles between the shareholder, the Board and Eskom Holdings is wholly owned by the South African National Energy Regulator of South Africa (NERSA) across the group and conducts an annual assessment management, defined in the MOI and supported by Government, with the Department of Electricity and under the National Energy Regulator Act, 2004 and of our application of the principles and practices of our delegation of authority (DOA) and significance Energy, led by Dr Kgosientsho Ramokgopa, acting as the Electricity Regulation Act, 2006, as amended by the King Code on Corporate Governance. We aim to and materiality framework (SMF) which is aligned to shareholder representative. the Electricity Regulation Amendment Act (ERAA) of apply the principles and practices of the King V Report the Public Finance Management Act, 1999 (PFMA). 2024. NERSA issues industry licences and sets revenue on Corporate GovernanceTM for South Africa, 20251 These tools set out when matters must be escalated Under the PFMA, we submit a five-year Corporate allowances in line with the Electricity Pricing Policy. (King V) from FY2027. for Board or shareholder approval. Plan annually to our shareholder and National Koeberg, our only nuclear facility, is regulated by the Treasury. The FY2027 Corporate Plan, approved National Nuclear Regulator (NNR). Our generation Wholly owned subsidiaries are governed by a by the Board in February 2026, covers the five- licences set limits on emissions and water use. IR Refer to “Governing and leading ethically – Applying subsidiary governance framework, which has been year period to FY2031. We also conclude an annual the King Code on Corporate Governance” in the updated to account for the impact of the legal shareholder compact setting, which sets targets We operate under a wide range of laws and integrated report for further information separation process. Under an active performance for key performance indicators (KPIs) aligned with regulations covering tariffs, environment, procurement management approach, Eskom Holdings sets the the shareholder's Strategic Intent Statement. Our and labour. The Board, supported by its committees, is the strategic direction and provides funding support, progress against the shareholder compact is reported focal point of governance and accounts to the while subsidiaries operate independently against to the shareholder and National Treasury quarterly, ADAPTING TO A CHANGING ELECTRICITY shareholder on the group's performance. It sets the performance compacts set by Eskom as their after being approved by the Board. The report also SUPPLY INDUSTRY organisation’s strategic direction and safeguards long- shareholder, on which they report regularly to Eskom. covers compliance with the debt relief conditions The South African electricity supply industry is term sustainability. The Executive Committee (Exco) associated with the Eskom Debt Relief Act, 2023 as being fundamentally reshaped. Policy reform, the manages day-to-day operations and implements The boards of NTCSA and Escap are chaired by, amended, which determine the conversion to equity accelerating shift to cleaner energy, technological Board-approved strategy. and consist mostly of, independent non-executive of the various tranches of the debt relief support change and greater customer choice are opening the directors. Once the legal separation is complete, of R230 billion in total to be provided to Eskom by market to new participants and new business models. Following approval by Cabinet in October 2025, the the boards of the new subsidiaries – NEDCSA to National Treasury. Eskom, until recently one of the few remaining Minister of DEE appointed eight new members and house the Distribution business, Eskom Green as the vertically integrated utilities globally, is repositioning four returning members to the Board with effect from vehicle for the renewables business, and GxCo which itself to compete and lead in this new environment. 1 December 2025. Six board members stepped down is intended to house the Generation business – will AFS P  erformance against the 2026 shareholder compact similarly be majority-independent, and all will have the is detailed in the directors’ report in the financial Our transformation rests on three linked shifts: on 30 November 2025 at the conclusion of their statements three-year term. Bajabulile Tshabalala has assumed Eskom Board as shareholder representative. • Unbundling: separating our generation, transmission the role of Lead Independent Director, taking over and distribution businesses into focused, from Leslie Mkhabela after the conclusion of his term. Divisional boards for Generation and Distribution accountable subsidiaries Mteto Nyati will continue to serve as Chairman until continue to serve as transitional structures during the PR In this report, KPIs from the compact that are shown in tables are marked SC and are included in the • Modernising: strengthening the grid, adding October 2026 when his three-year term comes to legal separation process. They promote accountability statistical section contained from page 70 flexibility and rolling out digital tools such as smart an end. within each division and report to Exco. They are meters operational in nature and do not constitute formal boards of directors under the Companies Act, 2008. • Diversifying: expanding the energy mix to include IR Detail of the composition of the Board and Exco is We are also subject to oversight by National Treasury, renewables, gas, nuclear and storage alongside a provided in the integrated report the Department of Forestry, Fisheries and the responsibly managed coal fleet Environment (DFFE), the Department of Water and Sanitation (DWS) and the Department of Planning, In December 2025, Minister Ramokgopa approved Monitoring and Evaluation (DPME), and we report our revised unbundling strategy. It introduced a new regularly to various parliamentary committees. holding company (NewCo) with four wholly owned subsidiaries: NTCSA (already operational), NEDCSA (not yet operational), a generation company (GxCo) and Eskom Green (housing the renewables business). 1. Copyright and trademarks are owned by the Institute of Directors in South Africa NPC and all of its rights are reserved. 5 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Who we are and what we do continued In line with the Electricity Regulation Amendment The System Operator, housed in NTCSA, balances Act, an independent state-owned Transmission supply and demand in real time to keep the system GENERATE TRANSMIT System Operator (TSO) will be established outside frequency at 50Hz. We are part of the Southern of Eskom to operate the wholesale electricity African Power Pool (SAPP), which relies on strong Power stations 30 Transmission lines 33 691km market. During the State of the Nation Address in transmission networks across member countries to February 2026, President Cyril Ramaphosa announced support regional grid stability. Nominal capacity 47 378MW Transformer capacity 161 423MVA the establishment of the Eskom Restructuring Task Team (ERTT) to accelerate the establishment of the Eskom owns and operates most of South Africa's base-load and peaking generation capacity. Coal-fired stations 39 692MW independent state-owned TSO. DISTRIBUTE We have 30 power stations with a nominal capacity of Nuclear power 1 880MW 47 378MW, that utilise coal, nuclear fuel, water, wind, Overhead lines 369 068km IR Refer to “Reflecting on our operating context – diesel and small volumes of solar power. The group Pumped storage 2 724MW Adapting our business model through unbundling” in also manages a transmission and distribution network Underground cables 8 496km the integrated report for more information on the Hydro 602MW of more than 411 000km of power lines. recommendations of the ERTT Transformer capacity 148 241MVA IPPs, which sell to the group through NTCSA, OCGTs 2 380MW WHAT WE DO had installed capacity of just around 8 500MW We create value by generating, transmitting, at year end, mainly wind and solar photovoltaic Renewables – Wind 100MW distributing and selling electricity to a wide range (PV). Renewable generation is variable and non- of customers. We serve primarily South African dispatchable when no battery storage is attached, which can place strain on our coal fleet: coal units When renewable output is high, the System Operator Under NTCSA's Transmission Development Plan, customers, along with a few international customers, may need to curtail generation by renewable IPPs – at we aim to connect around 56GW of new generation using energy we generate as well as power purchased typically idle at around 60% capacity to remain stable. a financial cost – to protect grid frequency. Increasing capacity by 2034, to be delivered mostly by IPPs, with from independent power producers (IPPs) and the flexibility of our fleet and adding storage are investment focused on the Western Cape, Eastern imported from neighbouring countries. Mozambique therefore central to our modernisation agenda. Cape, Northern Cape and Mpumalanga. To accelerate remains our most significant trading partner for both delivery, five transformer suppliers and 19 overhead imports and exports. transmission line contractors have been appointed to PR Details on our power stations, power lines and substations are available from page 75 long-term panels. The Government-led Independent PR Customer numbers, sales volumes and revenue by Transmission Projects (ITP) programme aims to draw segment are shown in the supplementary information in private sector funders and developers to further on page 78 expedite delivery. Overall nominal capacity provided by Eskom Total energy supplied by Eskom and IPPs, by Energy breakdown by supplier Energy breakdown by destination and IPPs, by source source (excluding wheeling and net of pumping) 3.4% 0.4% 0.5% 2% 5.8% 5.7% 3.3% 10% 12% 6.0% 2.6% 5.7% 7% 6.1% 7.4% 55 943MW 202 890GWh 202 890GWh 201 953GWh 71.0% 81.5% 88% 81% Coal Wind Diesel Hydro Coal Wind Hydro net Nuclear Eskom IPPs Imports Local sales International saes Solar Nuclear Other renewables Solar Diesel Other renewables Technical and other losses The difference between the total supply and demand is due to own use and timing differences. 6 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Who we are and what we do continued The supply and demand of electricity is shown below. Source, GWh 2026 2025 2024 Coal-fired stations 165 431 179 426 166 606 Nuclear power 11 618 8 409 8 172 Pumped storage stations 4 406 4 649 4 386 Open-cycle gas turbines (OCGTs) 811 2 176 3 634 Hydro stations 2 416 710 1 448 Wind 284 332 329 Eskom generation 184 966 195 702 184 576 Pumping by pumped storage stations (5 762) (6 064) (5 710) Net sent out by Eskom 179 204 189 638 178 866 Independent power producers (IPPs) 19 596 19 365 20 183 Imports 4 090 7 570 9 150 Wheeling1 3 103 2 028 2 449 Energy available for distribution 205 993 218 601 210 648 Technical and other losses2 (23 921) (25 339) (23 502) Internal use (349) (349) (329) Wheeling1 (3 103) (2 028) (2 449) Unaccounted3 (588) (1 162) (1 057) Local and international sales 178 032 189 723 183 311 Additional information Estimated loadshedding and load curtailment4 36 354 13 215 Percentage of demand not met4 0.02% 0.16% 5.92% 1. Wheeling refers to the movement of electricity between international customers through Eskom’s network, without the power being available to customers on the South African grid. 2. Technical losses occur during the transmission and distribution of energy. Non-technical losses primarily relate to electricity theft through illegal connections, meter tampering and the use of illegal electricity tokens on prepaid meters. Meter reading and billing errors are also included. 3. The unaccounted value is a balancing figure due to different cut-off dates for recording sales and production volumes. 4. This is an estimate by the System Operator based on forecast versus actual demand at a given time. It does not account for load shifting in response to loadshedding. 7 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information How we deliver value The availability and quality of our six capital inputs empowers us to deliver on our strategic objectives. This enables us to deliver essential electricity services and outcomes that drive long-term value for our stakeholders and enable the growth and sustainability of South Africa. OUR SIX CAPITALS OUR INPUTS TO THE CAPITALS We aim to align our value creation FINANCIAL CAPITAL R1.4 billion Funding raised (2025: R8.7 billion) with a selection of UN SDGs Financial capital includes retained earnings, equity from National R80 billion Government support received (2025: R64 billion) Treasury and Government-guaranteed debt funding. Lenders earn R20.1 billion Conversion of China Development Bank (CDB) facility from USD to CNY interest on financial capital.​ MANUFACTURED CAPITAL 47 378MW Nominal power station capacity (2025: 46 866MW) Manufactured capital consists of power stations as well as 8 565MW IPP capacity (2025: 7 495MW) transmission and distribution networks, supplemented by IPPs and 411 255km Power lines and cables (2025: 411 181km) imports. It is enhanced by commissioning new units, extending power lines, and maintaining existing plant.​ NATURAL CAPITAL 96.5Mt Coal burnt (2025: 106.2Mt) Natural capital includes non-renewable energy sources like coal, 241 562Mℓ Net raw water used (2025: 268 638Mℓ) water, and nuclear fuel, consumed to generate electricity. Waste is produced, impacting the environment. We aim to transition Non-renewable energy sources Renewable energy sources to renewable energy and mitigate impacts on bird life from 165 431GWh Coal (2025: 179 426GWh) 11 019GWh Hydro (2025: 12 999GWh) transmission networks. 11 618GWh Nuclear power (2025: 8 409GWh) 11 624GWh Wind (2025: 10 983GWh) 1 079GWh Eskom and IPP OCGTs (2025: 2 838GWh) 6 781GWh Solar (2025: 6 492GWh) SR Read more about our impact on Nil Other (2025: 425GWh) 1 100GWh Other (2025: 1 065GWh) the SDGs in the sustainability report HUMAN CAPITAL 42 030 Employees at the start of the year (31 March 2025) Human capital involves employees’ competencies, focusing on R2.2 billion Training spend (2025: R1.5 billion) racial, gender and disability equity. Despite financial constraints, we 1 244 Headcount increase (2025: 1 405 increase) enhance skills through training, balancing headcount changes with preserving our knowledge base. Loss of competent staff impacts 3 713 Technical and non-technical learners (2025: 2 609) this base. 931 Youth Employment Services learners at year end (2025: 612) SOCIAL AND RELATIONSHIP CAPITAL R153.25 million CSI committed spend (2025: R146.2 million) Social and relationship capital involves interactions with R226.2 billion B-BBEE attributable procurement spend (2025: R205.4 billion) stakeholders, supporting economic growth, job creation, B-BBEE R2 billion Electrification spend funded by Government (2025: R2.4 billion) and socio-economic development. We acknowledge the negative health impacts of our operations and are working on projects to reduce emissions. INTELLECTUAL CAPITAL R151.5 million Research, testing and development spend (2025: R145.8 million) Intellectual capital encompasses technology, organisational Information technology, telecommunications and operational technology knowledge, systems, policies and innovation. Our System Operator Organisational knowledge, intellectual property, systems, policies and procedures manages the supply-demand balance, maintaining the frequency at 50Hz, and is crucial for future technological advancements and operational improvements. 8 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming Who we are and Transforming energy how energy wecreate to createvalue value Growing Leadership Thoughts from ourreports Strengthening leadership Our Our strategic strategic andand risk risk Interacting with landscape landscape Governance Leveraging governanceSustaining and forethics transformation Financial Performance review Performance overview Supplementary Supplementary Supplementaryinformation information ABC to create value our people our infrastructure the environment communities overview information Delivering value through How we deliver our business model continued value continued Eskom generates, Eskom generates, transmits, transmits, and and distributes distributes electricity electricity to to industrial, industrial, mining, mining, commercial, commercial,agricultural agriculturaland andresidential residentialcustomers, customers,asaswell wellasasredistributors, redistributors,including includingmunicipalities municipalitiesand andmetros. metros. GENERATION TRANSMISSION NTCSA DISTRIBUTION OUTPUTS PRODUCTS WASTE AND BY-PRODUCTS Power stations produce electricity from coal, nuclear and renewable High-voltage electricity is transmitted via Medium- and low-voltage resources, using primary energy inputs such as coal, water, the national grid using transformers and electricity is distributed to 183 311GWh 189 032GWh 178 723GWh 29.27Mt 30.24Mt 28Mt limestone, fuel oil, diesel and nuclear fuel transmission lines customers and redistributors Electricity sales to Ash produced using substations and distributors and to distributors, (2024:30.20Mt) (2025: (2023: 29.27Mt) 30.24Mt) Coal and gas: We generate electricity from coal and gas, These transformers lower the voltage of the reticulation lines and cables industrial, commercial, optimising asset performance and utilising Eskom and IPP stations for electricity international, residential 145.30kt 122.94kt 176.32kt peaking capacity and other customers Particulate emissions SYSTEM OPERATOR (2023: (2024:129.32kt) (2025: 145.30kt) 122.94kt) (2023: (2024:188 (2025: 183401GWh) 189 311GWh 723GWh) ) Nuclear: We operate Koeberg, Africa’s only nuclear power station We maintain the frequency of the power system at 50Hz to balance electricity supply 190.4Mt 204.6Mt 184Mt Renewables: Renewable energy (hydro, wind and solar) is CO CO22 emitted emitted supplied from Eskom, IPPs and imports and demand in real time (2023: (2024: 187.5Mt) (2025: 190.4Mt) 204.6Mt) 1 Power stations generate electricity. We also purchase 4 Electricity is distributed to customers and externally generated energy from IPPs and import partners redistributed by municipalities and metros Distribution substation Hydro Industrial Nuclear High-voltage transmission line 3 Transformers lower the voltage Wind High-voltage transformer Poles 2 High-voltage electricity is transmitted via the Commercial Solar national transmission grid Coal-fired and OCGTs Residential 11 13 9 ESKOM ESKOM ESKOM HOLDINGS HOLDINGS HOLDINGS SOC SOC SOC LTD LTD LTD Integrated Integratedreport Performance report2024 2025 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information How we deliver value continued OUR CAPITAL OUTCOMES Value eroded Value preserved OUR MATERIAL MATTERS Value created FINANCIAL CAPITAL R  46.7 billion Debt and interest repaid, excluding CDB conversion (2025: R79.8 billion) R108.6 billion EBITDA (2025: R98 billion, restated) M1 S ustaining ethical leadership R354.7 billion Revenue (2025: R340.9 billion) R111.6 billion Arrear municipal debt (2025: R94.6 billion) M2 E nhancing financial R7.1 billion Eskom and IPP OCGT spend (2025: R17.7 billion) sustainability and liquidity MANUFACTURED CAPITAL M3 R  eversing the decline in sales and diversifying 270.8km Transmission lines installed (2025: 292.6km) 65.16% Energy availability factor (2025: 60.60%) revenue 4 000MVA Transmission transformer capacity installed (2025: 2 620MVA) 799MW from the commercial operation of Kusile Unit 6 M4 A  chieving operational  oth units at Koeberg Power Station uprated to 940MW, following B excellence 6 10 223 Smart meters installed and commissioned (2025: 321 496) steam generator replacements M5 Improving customer R45.0 billion Capital expenditure (2025: R41.1 billion) centricity NATURAL CAPITAL M6 E nhancing environmental 67 Environmental legal contraventions (2025: 65) 1.34ℓ/kWhSO Specific water consumption (2025: 1.40ℓ/kWhSO) stewardship 0.98kg/MWhSO Relative particulate emissions (2025: 0.64kg/MWhSO) M7 Building a skilled workforce HUMAN CAPITAL M8 H  arnessing digitalisation 43 274 Employees at year end R50.4 billion Gross employee benefit expense (2025: R45.4 billion) and AI 0.18 Lost-time injury rate (2025: 0.23) 1 013 Employees enrolled for further studies (2025: 930) M9 F urthering national developmental goals 7 Employee and contractor fatalities (2025: 3) 2 268 Appointments through internal hires and promotions (2025: 3 106) M10 Executing the unbundling SOCIAL AND RELATIONSHIP CAPITAL M11 C  reating the Eskom of 90.5% Key customer delight (2025: 86.8%) 6 7 578 Electrification connections (2025: 83 031), including the future 2 119 off-grid connections 1 510 540 CSI beneficiaries (2025: 1 203 566) M12 A  dvancing climate action 4 days Loadshedding (2025: 13) and a just energy transition R  49 billion Total taxes, duties and levies withheld and paid to SARS (2025: R43.5 billion) M13 U  pholding governance, compliance and ethics INTELLECTUAL CAPITAL M14 F ighting criminality and Eskom Academy of Learning delivered training programmes covering renewable energy, battery energy storage and smart grid technologies misconduct Grootvlei climate-smart horticulture facility commissioned, with training provided to surrounding communities Control environment strengthened through the audit recovery programme IR R  efer to the material matters in the Cyber-security posture enhanced, with no Priority 1 cyber-security incidents recorded integrated report Raptor Fusion Centre launched to drive intelligence-driven forensic investigations and rapid response security interventions 10 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Growing our people Eskom’s recovery is powered by 43 274 Guardians. As the business modernises, our people modernise with it – every investment in their capability, safety and wellbeing is an investment in the electricity system South Africa needs. – Dan Marokane, Group Chief Executive Our workforce sits at the centre of Eskom’s sustained investment in learning and development operational recovery and the modernisation of the and continued advancement of transformation across electricity sector. Building a skilled, representative the workforce. and accountable workforce, anchored in a high- performance, ethical culture, remains central to how Alongside these gains, we recognise the areas we deliver on our mandate and create long-term that require sustained focus. Safety remains our value for our shareholder, lenders, employees and the foremost responsibility – employee, contractor and country we serve. public fatalities are unacceptable and a reminder that our value of Zero Harm is a daily discipline. During FY2026, our focus was on stabilising the Each fatality incident is thoroughly investigated and workforce, strengthening safety and wellbeing, the lessons drawn are embedded in the controls, embedding a high-performance, ethical culture and behaviours and leadership accountability that keep equipping our people with the technical, digital and our people, contractors and communities safe. In leadership capabilities required for a modernising parallel, retirement exposure, critical skills gaps, market. The year saw meaningful progress, including contractor safety and the workforce transition linked the conclusion of a multi-year wage agreement that to unbundling and the Just Energy Transition (JET) provides labour certainty into the medium term, remain material people risks that we actively manage. renewed external recognition of our people practices, High-performance Skills and Employer Future-fit 2 ethical culture capabilities of choice organisation • Culture • Reskilling and • Competitive rewards • 90% successor transformation redeploying 15 000 and recognition coverage for critical anchored in our six employees by FY2031 • Diversity, equity, roles cornerstones • Closing critical inclusion and • Digitally enabled, agile 11 Growing our people • Accountability and technical, digital and belonging and productive 19 Strengthening our infrastructure consequence Just Energy Transition • Employee wellbeing workforce 32 Interacting with the environment management (JET) related skills gaps and mental health • Supporting JET and • Leadership • Training and long-term 40 Sustaining communities development and development to close sustainability continuity priority skills gaps Guided by our six culture cornerstones • People prioritisation • Accountability • Operational excellence • Customer centricity • Financial prudency • Being values-driven 11 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Growing our people continued Our People Plan continues to focus on four priorities: Underpinning the People Plan is our commitment to Group headcount comprised 41 334 permanent employees and 1 940 fixed-term contractors. We were further building a high-performance, ethical culture, embedding the social dimension of environmental, supported by 2 432 third party contractors, who are active on our work sites and whose safety we address later positioning Eskom as an employer of choice, creating social and governance (ESG) into how we work. Our in this section. Workforce planning is guided by an upper headcount limit of 43 309 over the next five years, a future-fit organisation and closing the critical skills approach brings together social capital, human capital ensuring that people investment remains aligned with operational requirements and long-term affordability. gaps that will shape the next decade. This work and health and safety, ensuring that we deliver a just is guided by our six culture cornerstones: people transition, invest in our people and communities and prioritisation, operational excellence, financial safeguard the wellbeing of everyone who contributes prudency, accountability, customer centricity and to Eskom’s mandate. Change in group headcount Employee complement by function being values driven. As the business modernises, our 2 626 42 030 43 274 people modernise with it, supported by targeted 40 421 39 601 40 625 (6%) investment in transformation, rewards, safety and 6 027 (14%) 13 543 wellbeing, learning and labour relations. (31%) 43 274 890 Social capital Human capital (2%) • Ensure fair JUST energy transition to • Prioritise employee 16 352 3 836 (38%) sustainable energy sources wellbeing and development (9%) 2022 2023 2024 2025 2026 • Foster community welfare and support • Promote diversity and Generation Group Capital NTCSA Distribution 1 local development through CSI initiatives ERI Corporate inclusivity within the • Ensure sustainable supply chains by workforce through equity focusing on supplier development, initiatives industrialisation, and localisation through • Become employer of choice More than 90% of our workforce is directly involved Employee complement by occupational level, number the SETP by investing in employee in the generation, transmission and distribution of Health and safety • Safeguard the wellbeing of all employees and contractors S skills and career growth • Encourage innovative ideas and solutions from electricity. As the new build programme draws to a close, we are redeploying skilled employees to strategic growth areas focused on the Transmission Top management Senior management 14 385 employees Development Plan, grid expansion, renewable Middle management 7 751 and professionals • Strengthen safety protocols throughout the organisation 2 3 • Transform organisational culture to be a high- energy capacity and the Strategic Delivery Unit. This preserves critical technical expertise, protects Skilled 23 941 • Ensure the safe management performance ethical culture institutional knowledge and avoids unnecessary job Semi-skilled 10 874 of waste, including nuclear and promote inclusivity losses as our operating model evolves. Unskilled 309 Retirement exposure remains a key long-term workforce risk. Two in five of our people are aged 41 to 50, and a further one in five is over Employee complement by age, % WORKFORCE COMPOSITION AND Group headcount grew to 43 274 (2025: 42 030), 50, which means a meaningful share of our TRANSFORMATION with additions concentrated in the Generation technical and institutional knowledge will exit the 40% Division and Eskom Rotek Industries SOC Ltd organisation over the next decade. We continue OUR PEOPLE IN NUMBERS 33% (ERI) to reinforce plant performance, maintenance to strengthen succession planning, knowledge Our workforce reflects the scale and complexity execution and operational resilience. Attrition eased transfer and leadership development to protect of the electricity system we operate. We plan to 5.35% (2025: 5.58%), reflecting our ability to retain operational continuity and build the next generation our workforce around a simple principle: the right critical institutional knowledge while creating space of technical and leadership talent. Our learner 16% people in the right roles as our operating model for new talent. During the year, we appointed 3 492 pipeline, mentorship and targeted skills development evolves, balancing operational demand with financial employees externally and facilitated 2 268 internal programmes, discussed later in this section, are 7% sustainability and the shift to a modernising system. 4% placements through promotions and transfers, central to how we manage this risk. sustaining a balance between external capability and ≤30 31–40 41–50 51–60 >60 internal progression. 12 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Growing our people continued SOURCING TALENT AND SKILLS TRANSFORMING OUR WORKFORCE While we met our racial equity targets across Ensuring we have the right skills and capabilities to Transformation is a strategic priority for Eskom. A workforce that reflects South Africa strengthens decision- most occupational levels and improved female deliver on our strategy is a key priority, and one making, broadens the talent pipeline, deepens capability and reinforces our connection to the communities representation overall, gender equity at senior the Board actively oversees. Our talent acquisition we serve. management remained below target at 41.82% (2025: strategy gives effect to this through a four-pronged 42.58%). Increasing female representation in technical, sourcing framework – Build–Buy–Borrow–Bot Our approach is guided by our employment equity plan and gives effect to the Employment Equity Act, 1998, engineering and senior management roles therefore – which aligns workforce planning to our strategic as amended by the Employment Equity Amendment Act, 2022. During the year we aligned our employment remains a firm priority, embedded in our talent, imperatives. This structured approach recognises that equity plan to the five-year sectoral numerical targets gazetted for the electricity, gas, steam and air conditioning learning and succession processes and advanced effective leadership underpins our ability to create supply sector, which are effective from 1 September 2025 to 31 August 2030 and set the national target for the through our Women in Power initiative, mentorship value in a sustainable manner. employment of persons with disabilities at 3%. Against this framework we made further progress this year, with and leadership development. We are committed to racial equity targets met across most occupational levels and female representation continuing to improve. accelerating progress towards our employment equity By developing talent internally, our Build channel plan targets in the year ahead. remains central to how we secure the skills of the future, and it is where Eskom has long been recognised. Our learner and bursary programmes Racial equity by occupational level, %  ur employment equity performance at senior and PR O middle management/professional level is set out in provide a strong pipeline, while our succession the statistical tables from page 73 of this report programmes support leadership continuity in critical roles, an important safeguard against key-person risk. Yet, as we pursue a future-focused growth agenda, we recognise that certain skills do not exist within the organisation and must be sourced externally. The Buy 100.00 85.71 89.47 83.12 81.64 88.31 87.73 91.58 90.90 95.15 94.58 channel is reflected in recent senior managerial level appointments in Eskom Green and Group Technology, 47.95 a considered response to identified capability gaps. These approaches are complemented in two further Top Senior Middle management Skilled Semi-skilled Unskilled ways. Through Borrow, we supplement our permanent management management and professionals workforce with temporary talent in the form of fixed-term contractors, giving us the agility to respond Target Actual met target Actual almost met target (within 5% threshold) Actual did not meet target to short-term and project-based demands without Gender equity by occupational level, % compromising long-term workforce sustainability. Through Bot , we increasingly draw on technology, automation and artificial intelligence (AI) to augment our talent needs, applying oversight to ensure these tools are deployed responsibly and ethically. 47.95 41.82 43.42 44.23 45.27 41.75 37.81 38.88 By balancing internal development, external 33.88 29.98 expertise, temporary capacity and technology, 21.43 20.00 this framework enables the organisation to plan for both current and future demands with foresight. It reinforces our commitment to ethical, effective and Top Senior Middle management Skilled Semi-skilled Unskilled accountable leadership, and to safeguarding our ability management management and professionals to create and sustain value over time. Target Actual met target Actual almost met target (within 5% threshold) Actual did not meet target 13 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Growing our people continued Our workforce transformation is reinforced by the progress we are making on a broader economic Racial and gender representation across the workforce transformation, including an improvement in our B-BBEE rating to level 3 against a target of level 4. Together, these outcomes support Eskom’s developmental mandate, contributing to inclusive economic participation and 1 319 sustainable socio-economic impact across the communities we serve. 2 953 (3%) (7%) 3 431 SR For further detail on diversity and inclusion, refer to “Diversity, equity and inclusion” in the sustainability report (8%) 16 484 (38%) 43 274 43 274 SAFETY AND WELLBEING FOCUS ON SAFETY The safety, health and wellbeing of our employees, contractors, customers and the communities we serve is fundamental to how we create sustainable value. Our commitment to Zero Harm remains the core value that 35 571 26 790 (82%) (62%) shapes our decisions, behaviours and leadership across the organisation. African White Coloured Indian Male Female During the year, we strengthened our safety culture by reinforcing leadership accountability, improving risk management and embedding critical risk controls across our operations. Visible-felt leadership, structured safety conversations and executive site visits reinforced accountability at every level of the organisation. We also reinforced our life-saving rules across high-risk activities including working at heights, working with electricity and During the year, we advanced gender inclusion Inclusion also extends to creating meaningful driving, supported by compliance verification and targeted interventions. through our Women in Power initiative, which employment for persons with disabilities. At year extends the Eskom Women Advancement end, employees with disabilities represented 3.36% of We monitor our safety performance through key indicators including employee lost-time injury rate (LTIR), Programme through leadership development, our workforce (2025: 3.11%), exceeding the national employee and contractor fatalities, occupational diseases and critical risk controls. The LTIR target reflected in mentoring and career progression opportunities. target of 3% and progressing towards our internal the table below indicates our tolerance level. In line with our value of Zero Harm, the true target is zero. This initiative has a particular focus on building employment equity plan target of 3.2%. During Target Target Target Target Actual Actual Actual the pipeline of women in technical and leadership the year, we continued to create opportunities Measure and unit 2029 2027 2026 met? 2026 2025 2024 roles. Supporting measures include post-partum for persons with disabilities through the Youth reintegration standards, mothers’ rooms at head Employment Service (YES) programme, with 931 YES Fatalities – employees and contractors, – – – 7 3 5 office and six satellite offices, as well as our hybrid learners enrolled at year end. number working policy. Fatalities – public, number – – – 11 15 20 Employees with disabilities by occupational level, Employee lost-time injury rate, index number 0.25 0.29 0.30 0.18 0.23 0.29 (including occupational diseases) SC To lead is to serve. Even when 3 201 it’s difficult, keep serving. Our employee LTIR improved to 0.18, within the shareholder compact tolerance level of 0.30 (2025: 0.23), reflecting stronger operational discipline, improved hazard identification and greater ownership of safety – Dr Candice Hartley, Chief 455 across the organisation. This improvement matters beyond the metric itself: a safer, more disciplined operating People Officer, reflecting on environment underpins the plant stability and reliability central to our recovery. Confirmed occupational diseases 1 452 reduced to 10 cases during the year (2025: 15), with most relating to noise-induced hearing loss. Work continues Eskom’s role at the Forbes to strengthen hearing conservation and noise exposure controls across high-risk operations. Woman Africa Leading Women Summit 2026 Despite progress in leading indicators, employee and contractor fatalities rose from three in FY2025 to seven 793 in FY2026, comprising four employees and three contractors (2025: one employee and two contractors), an Middle management and professionals Skilled outcome we consider with the utmost seriousness. Each incident is thoroughly investigated to identify root Semi-skilled and unskilled Senior management causes, implement corrective actions and ensure lessons learned are shared across the group. Strengthening fatality prevention remains our highest safety priority as the loss of life from our operations is unacceptable. 14 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Growing our people continued Our approach to safety extends beyond compliance. In memoriam We continue to foster a culture where every The causes of these fatalities are shown below. Our heartfelt condolences go to the families, employee and contractor is empowered to identify friends and colleagues of the following hazards, intervene when conditions are unsafe and individuals who lost take personal responsibility for their own safety and 2 1 their lives while in service of Eskom and our that of others. customers: Peter Isaac Beukes: Distribution employee 2026 2025 LEARNING FROM INDUSTRY INCIDENTS 4 2 Theophilus Mpere Maila: Distribution Public safety remained a key focus during the contractor year. At our quarterly Public Safety Forum 1 Mokgoko Johannes Masemola: Distribution in February 2026, Sasol shared lessons employee from a recent fire incident, reinforcing the Electrical contact Vehicle accident Other Electrical contact Other Thulani Vincent Msimango: Eskom Rotek importance of coordinated communication Industries employee between organisations. The Passenger Rail Gilbert Madala Nkonyana: Generation Agency of South Africa (PRASA) also raised employee concerns about unsafe public behaviour near railway lines. We reflected on these learnings SUPPORTING HEALTH AND WELLBEING focused on prevention, early intervention and Solomon Seleka: Generation contractor and subsequently shared relevant public We take an integrated approach to employee sustained employee support. Programmes were Zenzele Herbert Sibeko: Generation contractor safety awareness material with participating wellbeing, supporting employees physically, mentally, expanded to address mental health awareness, grief organisations to strengthen broader emotionally and socially throughout their careers. counselling, menopause support, disability inclusion stakeholder communication. This is underpinned by our occupational health and employee assistance services. Our fatigue Contractor safety is a key people-related risk that infrastructure, including in-house services across management programme remains an important we actively manage. During the year, we tightened 47 clinics that deliver medical surveillance, fitness-for- component of our broader health and wellbeing contractor pre-qualification requirements, on-site duty assessments and primary healthcare, enabling approach. SR F urthermore, detail on occupational health, supervision and shared safety accountability at project early detection and timely support. employee wellbeing and public safety is covered Zero Harm remains our foundational commitment, level. Building on this, work is underway to further under “Health and wellness” in the sustainability During the year, we elevated mental health to a and fatality prevention stays our highest priority into integrate contractor safety performance into contract report Priority 1 risk, reflecting the operational pressures FY2027. We will sustain the gains reflected in our management and performance reviews, and to and personal challenges facing our people. This is improved leading indicators while strengthening the strengthen frontline supervision on high-risk activities supported by an integrated mental health framework areas that continue to expose our people, contractors in FY2027. and communities to risk – deepening root-cause Public fatalities decreased to 11 (2025: 15), the analysis and contractor safety accountability, reducing majority arising from electrical contact incidents. workplace injuries and ill-health, increasing employee Despite the reduction, every one of these represents engagement on occupational health and safety, and a life lost, and we remain firmly guided by the building understanding of Zero Harm across the principle that even a single fatality is one too many. workforce. Supported by continued collaboration We manage public safety as an ongoing risk and are with partners such as Sasol, Transnet and PRASA, committed to strengthening the interventions needed and by advancing our mental health framework, we to prevent harm. This includes leading proactive are targeting measurable reductions in public and engagement on community encroachment within our contractor incidents, reinforcing safety and wellbeing servitudes, which exposes communities to avoidable as enablers of a stable operating environment and a risk, supported by awareness campaigns, community resilient, future-ready workforce. engagement and infrastructure protection measures. SR F or more information on health and wellness and  ublic safety initiatives are discussed in more detail PR P managing mental health, refer to “Managing mental under “Sustaining communities – Public safety” health” in the sustainability report from page 42 of this report 15 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Growing our people continued REWARDS AND RECOGNITION REMUNERATION AND BENEFITS of the first two years. Although the National Union SHORT-TERM INCENTIVE SCHEME EMPLOYEE VALUE PROPOSITION AND Our approach to remuneration and benefits balances of Metalworkers of South Africa (NUMSA) did not The Board, with shareholder support, reintroduced ENGAGEMENT the attraction and retention of critical skills with sign, the agreement is binding on all bargaining unit the group short-term incentive (STI) scheme in Our employee value proposition (EVP) supports the fairness to employees, affordability to the business employees in line with the Labour Relations Act, FY2025 as part of Eskom’s broader turnaround attraction, development and retention of the skills and credibility to our shareholder and lenders. Our 1995. The agreement is effective from 1 July 2026 to plan. The STI scheme reinforces our shift to a high- we need to deliver our mandate. Through meaningful total rewards framework anchors this approach and 30 June 2029. performance culture, rewarding delivery against work, development opportunities, competitive operates within the conditions of the Eskom Debt clear operational and financial gatekeepers and Relief Act, 2023 as amended and complies with the NUMSA has since referred a dispute to the is self-funded from improved performance. This rewards and an inclusive employee experience, Companies Amendment Act, 2024. Through our Commission for Conciliation, Mediation and approach ensures that variable pay is directly linked our EVP creates the conditions for a workplace rewards framework, we seek to attract and retain Arbitration (CCMA). The CCMA found the referral to the results our shareholder, lenders and employees where every employee feels valued and enabled to critical technical, engineering and leadership skills, to be procedurally defective and directed NUMSA expect from a rebuilt Eskom. contribute. reinforce a high-performance, ethical culture and to include NUM and Solidarity in the proceedings For the second consecutive year, Eskom was certified support organisational stability as the electricity before the matter is reconsidered. We understand that both NUM and Solidarity will defend the collective GR F or detail on remuneration governance, reward as a Top Employer South Africa by the Top Employers sector continues to evolve. We remain mindful of the structures and variable incentives, refer to Institute, a global authority on human resources affordability constraints that accompany the Debt agreement that was concluded. Our position remains “Ensuring fair remuneration” in our governance and strategy and certification. While external recognition Relief Act, and we manage the wage bill carefully to that a valid collective agreement, binding on all remuneration report reaffirmed the strength of our people practices, we protect both delivery and financial sustainability. bargaining unit employees, has already been concluded continue to focus on strengthening our ability to as the signatory unions collectively represent the attract critical skills in an increasingly competitive A significant milestone was the conclusion of a three- required two-thirds majority of bargaining unit MANAGING PERFORMANCE talent market, where scarce engineering and technical year collective wage agreement with our recognised employees. We are confident in defending this We regard performance management as a strategic capabilities remain in high demand. This is a key trade unions, signed on 17 April 2026. Bargaining unit matter and we do not expect the dispute to disrupt lever to drive sustained delivery and long-term people-related risk we actively manage through employees comprise around 81% of our workforce, operations or the agreed adjustments. sustainability. Our approach is founded on targeted retention, accelerated development and a and wage negotiations are conducted through accountability, alignment, fairness and continuous the Central Bargaining Forum (CBF). We opened The multi-year agreement supports cost improvement. It creates a clear line of sight between differentiated reward approach for critical roles. negotiations significantly earlier than in previous cycles, predictability, labour certainty and continued focus the shareholder compact and Corporate Plan through Internally, we reintroduced the Chairman’s Awards to with the aim of settling before the 2026 winter period. on operational improvements at a critical time for to team deliverables and individual accountabilities. recognise individuals and teams contributing to our the electricity sector. During the year, we progressed This ensures that every employee understands how operational recovery, reinforcing the link between Following four rounds of negotiations during FY2026 the review of our total rewards framework to ensure their contribution supports our objectives, and it performance, values and recognition. Building on and engagement with the shareholder, the National that it remains competitive, equitable and aligned to reinforces not only what we deliver, but also how this, we will continue to strengthen our EVP through Union of Mineworkers (NUM) and Solidarity our long-term workforce requirements. This work, results are achieved. targeted engagement, leadership development accepted our final offer of a 7% cost-of-living which includes strengthening how we reward and and reward interventions that support a high- adjustment for each of the three years, together with develop scarce and future-critical skills, will continue performance, values-driven culture. a once-off payment of R10 000 before tax in each in FY2027. This certification recognises Eskom’s contribution to creating a better world of work through excellence in people practices, which is positively impacting the lives of our employees. – Sharmila Govind, Chairperson: Human Capital and Remuneration Committee 16 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Growing our people continued During the year we adopted a team-based During the year, we invested R2.2 billion in learning MITIGATING SKILLS AND SUCCESSION RISKS performance management model to entrench a “One and development (2025: R1.5 billion). Through Retirement exposure remains a key long-term 848 936 Eskom” culture, improve visibility of strategic priorities the Eskom Academy of Learning (EAL) employees workforce risk, compounded by internal succession and encourage collective ownership of results. By accessed specialised programmes spanning depth in critical roles, long-standing acting linking performance to remuneration and recognition, engineering, operations, maintenance, outage arrangements and sustained competition for scarce 3 713 career progression and succession planning, the model management, legislative compliance and leadership technical skills in a tightening talent market. We 425 strengthens fairness, transparency and accountability development, with around 11 800 employees trained manage these risks through strengthened succession across the group. It also underpins stronger across core operational disciplines during the year. planning, knowledge transfer and leadership 967 consequence management to address criminality, development, supported by our learner pipeline, 537 misconduct and non-performance, reinforcing a culture Building future capability, we are equipping our mentorship and targeted skills development of accountability and ethical conduct. people for a more digital and diversified electricity programmes. The Skills and Advanced Generational Artisans Engineers Plant operators system. Employees engaged in programmes covering Technicians Non-technical Expertise (SAGE) programme retains experienced The benefits are evident in our operational and artificial intelligence (AI), data literacy, analytics employees aged 55 and older to transfer institutional financial recovery, including sustained improvements and cyber security, alongside expanded learning in The learner pipeline figure excludes learners participating in the knowledge to the next generation, while a YES programme. in generation performance, a marked reduction in renewable energy, battery storage and smart grid progression standard for critical technical roles allows loadshedding and a strong return to profitability. To technologies. Preparations for a Clean Energy Training suitably competent artisans, operators and technicians Technical learners account for around 77% of our support consistent application of the new model, Centre and Nuclear School progressed in partnership to advance based on demonstrated competence. learner pipeline, reflecting our strategic focus on we invested in building the capability of managers with academic and industry partners. To accelerate developing scarce engineering and operational and employees through targeted training. During the our digital transformation, we partnered with We remain focused on addressing delivery capability. Beyond addressing our own succession year, we conducted a comprehensive performance Microsoft to roll out Copilot AI licences across the constraints, including vacancies among training needs, these programmes create meaningful management refresher programme, with more than group, supported by foundational and role-specific facilitators, particularly in engineering and opportunities for young South Africans and contribute 90% of employees completing the programme. training for all employees. maintenance disciplines, which place pressure on our to national employment and economic development. Sustained engagement has helped us maintain capacity to deliver technical training at the required We are also modernising how we build capability. Artisans who complete their trade test certifications compacting and assessment completion rates of pace. We are addressing this through targeted Through the EAL Smart Campus, we commenced enter the broader job market with valuable experience over 95%, reflecting active participation across the recruitment, secondments from line management and the first phase of a blended and digitally enabled and qualifications, reinforcing Eskom's role as a catalyst organisation. a proposed training-practitioner allowance to attract learning environment, including solar PV carports for socio-economic upliftment. and retain scarce facilitation skills. Together, these efforts continue to embed a high- that are expected to deliver approximately 2MW of performance, ethical culture in which organisational peak renewable capacity upon completion, a digitised CREATING A STRONG LEARNER PIPELINE success, ethical conduct and individual accountability energy-metering dashboard and an innovation hub, POWERING POTENTIAL: INVESTING IN Building a sustainable talent pipeline is fundamental reinforce one another. positioning the academy as a centre of excellence for to our long-term workforce strategy. As experienced FUTURE ENERGY SKILLS energy-sector skills. employees approach retirement and the sector In February 2026, we awarded around 200 BUILDING SKILLS THROUGH LEARNING undergoes structural change, we continue to invest bursaries to young South Africans studying AND DEVELOPMENT Skills development for JET remains a central focus, in attracting, developing and empowering the next in critical fields aligned with our strategic As the electricity sector evolves, we continue particularly for employees whose roles are affected generation of engineers, artisans, scientists and digital priorities and the country's skills development to invest in the technical, digital and leadership by the decommissioning of coal-fired power stations specialists. agenda, supporting the pipeline of engineers, capabilities needed to sustain operational excellence, and the shift to lower-carbon operations. Transition, scientists and specialists needed to sustain enable digital transformation and support JET. reskilling and redeployment programmes are At the end of the year, our learner pipeline stood at and modernise the electricity system. This Closing critical skills gaps, one of the four People Plan underway to enable a fair transition, with the most 3 713, representing 9% of our permanent workforce builds on more than 50 years of investment priorities, is central to how we build the workforce exposed skill areas including high-voltage engineering, (2025: 2 609 or 6.5% of the permanent workforce). in education, including over 11 000 bursaries that will define Eskom’s next decade. grid planning, nuclear operations and renewables We enrolled 1 293 new learners during the year awarded in the past decade, coupled with integration. Over the medium term, we will reskill and (2025: 952), substantially ahead of our annual target mentorship and career-building support redeploy 15 000 employees by FY2031, representing of 290, supported by additional funding and expanded that strengthens long-term workforce around a third of our current workforce, positioning development opportunities. sustainability. our people to support the ongoing transformation of the sector. 17 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Growing our people continued Through this bursary programme, Eskom is deliberately Workforce transition risk linked to the unbundling Our approach to consequence management is programme is managed through structured corrective rather than punitive, reinforcing our building the pipeline of engineers, scientists and specialists workforce transition planning, sustained engagement culture, maintaining employee trust and ensuring who will lead the transformation of our energy system. with organised labour, retention arrangements for standards are applied fairly and consistently across – Dan Marokane, Group Chief Executive critical roles and clear communication with affected the group. Disciplinary and grievance matters are employees. This supports continuity of operations, managed with procedural fairness, timely resolution preserves critical skills and enables a smooth and organisational learning, supported by confidential The Eskom Expo for Young Scientists is Africa’s transition to the new operating structure. channels for employees to raise concerns, including largest and most prestigious science fair platform, SR F or more information on skills development and training, refer to “Learning in Eskom” in the our anonymous whistle-blowing mechanisms. Our providing school learners with an opportunity DRIVING ACCOUNTABILITY AND ethics programme, awareness campaigns and ongoing sustainability report to showcase original scientific investigations CONSEQUENCE MANAGEMENT training reinforce a values-driven culture and support and engineering innovations. Endorsed by the Building a high-performing organisation requires the effective application of consequence management. Department of Basic Education and the Department PEOPLE RELATIONS AND CONSEQUENCE accountability, integrity and consistent ethical of Science, Technology and Innovation, the Expo MANAGEMENT behaviour. Accountability is the visible expression of serves as South Africa’s official gateway for youth- GR F or more information on ethics and consequence ENGAGING OUR PEOPLE THROUGH the ethical culture we are building, and it reinforces led research. During the year, the Eskom Expo management, refer to “Fostering an ethical ORGANISED LABOUR two of our six culture cornerstones: accountability International Science Fair brought learners from 35 culture” and “Upholding good governance” in our Constructive engagement with organised labour and being values driven. governance and remuneration report South African regions as well as 16 international remains central to operational stability and participants to Kempton Park in Gauteng, highlighting organisational resilience. Our three recognised trade the programme’s broad reach and contribution to unions – NUM, NUMSA and Solidarity – represent developing future science, technology, engineering our unionised employees through a recognition and mathematics (STEM) talent. Three participating STRENGTHENING CONSEQUENCE MANAGEMENT THROUGH PARTNERSHIPS agreement and structured consultation forums young scientists subsequently advanced to the Our partnership with the Special Investigating Unit (SIU), the National Prosecuting Authority (NPA) and operating at strategic, national, divisional and business International Mathematics, Science and Engineering the South African Police Service (SAPS) continues to drive investigations, disciplinary action and criminal unit levels. Fair in İzmir, Türkiye. referrals across the group. Working together, we are recovering financial losses, holding wrongdoers to Engagement covers a broad range of employee account and strengthening the governance foundations of a rebuilt Eskom. SUPPORTING FURTHER STUDIES matters, including wages and benefits, conditions Investment in further studies supports long-term of employment, workplace safety, organisational workforce resilience and career progression. During change, workforce transition and skills development. the year, 1 013 employees participated in further Beyond formal engagement with organised labour, Reliance on external dispute resolution remains a line management, supported by lessons drawn from education programmes, of which 736 pursued a we continue to strengthen employee voice through pressure point, with several disputes referred to disciplinary and grievance matters that continue to bachelor’s degree or higher, while the balance studied regular engagement forums, leadership listening the CCMA during the year. Encouragingly, most inform policy refinement, awareness programmes and towards diplomas and certificates. Of the total, 672 sessions and direct employee feedback channels. arbitration awards were concluded in Eskom’s targeted interventions. FY2026 was characterised by were new enrolments and 341 continuations of favour, and the adverse awards mostly related to a stable labour relations environment, with lessons existing studies. Bargaining unit employees made up The conclusion of a three-year collective wage procedural deficiencies rather than the substantive from disciplinary and grievance matters continuing to the largest group at 825, with managerial employees agreement contributed to labour stability and merits of the cases, indicating that our decisions are inform policy refinement, awareness programmes and accounting for 188. operational certainty, supporting focused delivery generally sound, but that procedural consistency targeted interventions that reduce recurrence and of our strategic priorities, details of which were set and case-management discipline require continued embed accountability across the group. Encouragingly, 59% of the employees pursuing out earlier under “Remuneration and benefits”. The further studies were women, reinforcing our focus strengthening. early conclusion of the agreement was the result of Our priorities going forward include sustaining on inclusive skills development and the advancement sustained engagement between Eskom leadership, Grievance turnaround times remained above target constructive labour relations, strengthening ethical of women. The group also included 41 persons with organised labour and the shareholder, reflecting a during the year, notwithstanding an improved culture and continue refining our consequence disabilities. shared commitment to labour stability at a critical resolution rate, and inconsistency in the application management framework to support a high- Sustaining this momentum, we will continue to invest time for the electricity system. To position labour of discipline and grievance processes across the performance ethical culture. We will also embed in learning, skills development and future capability, relations for our evolving operating model, we group is a risk we actively manage. We are addressing the revised recognition agreement with labour while ensuring our workforce remains skilled, adaptable negotiated a revised recognition agreement during this through process strengthening, governance improving grievance turnaround and procedural and equipped to meet the evolving demands of the the year, for implementation in FY2027. oversight and ongoing people-relations training for consistency across the group. energy sector. 18 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Strengthening our infrastructure Eskom’s infrastructure continues to play a central role Distribution will continue the rollout of 5.4 million These dynamics require agile system management. SYSTEM PERFORMANCE in powering South Africa’s economy and supporting smart meters over the next three years to support To safeguard the integrity of the national grid, the The performance of our coal-fired power stations has its transition to a more sustainable energy future. demand flexibility, reduce energy losses and enable System Operator maintains sufficient reserves at shown continued improvement over the past year. Our focus remains on strengthening the performance customer-centric services. We are also investing in pumped storage and open-cycle gas turbine (OCGT) This was driven by the Generation Reliability and of our generation fleet, modernising our transmission battery energy storage systems and research-driven stations, enabling it to respond quickly and effectively Sustainability Plan, delivering sustained performance and distribution networks and accelerating the innovation, and we aim to add at least 6GW of clean when power supply is constrained during increased and availability improvements across our generation integration of renewable energy sources. While energy capacity to the grid by FY2030 through our demand situations. fleet. Unplanned unavailability averaged below challenges persist, we are committed to delivering newly established renewables business, Eskom Green, 10 900MW for the year, better than the base-case reliable electricity, driving innovation and building in support of South Africa’s Integrated Resource Plan When demand exceeds available supply and assumptions under both the Winter and Summer partnerships that enable long-term growth and (IRP 2025), while maintaining system reliability and emergency reserves have been depleted, country- Outlook. energy security for the country. affordability. wide loadshedding and load curtailment by specific energy-intensive customers are essential tools for Due to a significant easing of generation supply The final unit at Kusile, Unit 6, achieved commercial By strengthening our core assets, embracing new preserving system stability and preventing a grid constraints, loadshedding for the year was limited to operation on 29 September 2025, adding installed technologies and fostering partnerships, we are collapse. While we are committed to consistently four days in total during evening peaks in April and capacity of 799MW to the grid and representing an building a power system that can meet South Africa’s avoid the need for such measures, loadshedding May 2025 (2025: 13 days). important milestone in restoring base-load reliability. current and future needs of a stable, reliable and remains a vital tool to averting the greater threat of Through the National Transmission Company South affordable supply of electricity. Our progress this a regional or national blackout. Regular testing of the Loadshedding and load curtailment over the past Africa (NTCSA), we also commissioned new high- year demonstrates our resilience and capacity for various grid defence systems ensures our resilience five years, GWh and days voltage transmission lines and transformer capacity, transformation, charting the course for energy in responding to a major unplanned event or series 329 to support grid stability and enable the connection security and sustainable growth in the years ahead. of events. 280 of independent power producers and cross-border electricity trade. The continued rollout of smart MANAGING ELECTRICITY SUPPLY AND Electricity theft and illegal connections in certain meters to customers and the data purification DEMAND areas cause overloading of the system that can cause of customer records have enhanced customer THE ROLE OF THE SYSTEM OPERATOR localised network failures. Distribution continues to 13 476 13 215 service, helped to improve revenue collection and NTCSA’s System Operator manages the stability and implement load reduction in these areas to mitigate contributed to the reduction of non-technical losses. reliability of South Africa’s electricity grid, by ensuring against this challenge. that the grid operates within a narrow frequency 65 Despite these achievements, our ageing infrastructure band between 49.85Hz and 50.15Hz. It does this by PR For more information on the eradication of load 13 faces ongoing challenges. High utilisation rates have assuring there is a continuous balance between real- reduction, refer to “Sustaining communities 1 605 354 4 36 accelerated wear and tear, requiring sustained time electricity supply and demand through optimally – Evolving our business model” on page 42 of 2022 2023 2024 2025 2026 investment in refurbishments and predictive dispatching available generation and renewable this report GWh curtailed (estimate) Days maintenance. Non-technical and technical energy capacity. The challenge is to be sufficiently agile to losses remain elevated, driven by equipment theft, adapt to the challenges posed by the intermittent illegal connections and network inefficiencies. Human nature of non-dispatchable renewable energy sources factors, including fatigue and skills shortages in certain such as wind and solar, and the impact of unplanned areas, have also impacted operational performance. generation or transmission breakdowns. Building on the success of our recovery efforts, we Wind generation can fluctuate by as much as are now focusing on sustainably improving plant 2 000MW from one day to the next. When there is performance and restoring plant reliability. With the a decline in wind output, coupled with a lower solar gains realised to date, we are entrenching principles photovoltaic (PV) output due to cloud cover, the of reliability and sustainability and driving continuous system experiences a compounded supply constraint. operational excellence across the business. The This often happens while winter cold fronts cause Transmission Development Plan (TDP) sets out an a sharp rise in demand in densely populated areas. ambitious strategy to construct more than 4 300km of new transmission lines and around 35 000MVA of transformer capacity over the next three years, unlocking grid capacity for new IPP generation. 19 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Strengthening our infrastructure continued Renewable IPPs produced 18.4TWh to support the The System Operator anticipates continued improvement in system reliability and dispatchable generation Eskom and IPP-owned OCGTs generated a power system stability throughout the year (2025: capacity. This improved generation availability and the declining demand, results in an estimated surplus capacity combined 1 079GWh during the year (2025: 17.4TWh). Solar PV provided daytime support, while of around 2–3GW over the next 12 months. A high degree of uncertainty is attached to the estimated surplus 2 838GWh), reflecting improved base-load wind generation provided additional capacity to meet capacity. generation performance resulting in lower usage demand over evening peaks. of emergency resources. This output was achieved USE OF OPEN-CYCLE GAS TURBINES at load factors of 3.9% for Eskom and 3.0% for IPP DEMAND TRENDS AND EMERGING RISKS Open-cycle gas turbines (OCGTs) continue to play a vital role in our operational strategy, providing essential OCGTs (both against a budgeted load factor of 5.8%), Sales volumes have shown an overall declining support during periods of constrained supply. As OCGTs burn diesel fuel, they are significantly more expensive with expenditure on Eskom-owned OCGT fuel and trend over the past decade, declining by around 2% than other generation sources. However, their strategic deployment and rapid response time have been storage as well as IPP OCGTs totalling R7.1 billion for per year. Despite an increase in energy availability, instrumental in reducing the need to implement loadshedding, particularly during periods of high unplanned the year (2025: R17.7 billion), delivering substantial sales volumes for FY2026 declined by 6.2% to unavailability and delays in returning generation capacity to service. savings against the prior year and directly benefitting 178TWh against the prior year 189.7TWh (2025: the bottom line. Favourable diesel price movements increase of 3.5%). The deterioration in demand was Target Target Target Target Actual Actual Actual added to the gains from the improved operational most pronounced in the industrial sector, which Measure and unit 20291 2027 2026 met? 2026 2025 2024 performance. reduced by 22.5% year-on-year, particularly due to Eskom OCGT production, GWh 1 899 633 1 269 811 2 176 3 634 ferrochrome smelter customers that have curtailed Eskom OCGT cost, R million2 13 938 4 444 9 033 4 967 13 316 23 873 The reduction in reliance on OCGTs was made their production due to economic pressures. possible by the return to service of Medupi Unit 4 Embedded self-generation added to the decline, IPP OCGT production, GWh 792 264 528 268 662 1 509 and Koeberg Unit 1 from maintenance outages during with the installed behind-the-meter rooftop solar IPP OCGT cost, R million 4 261 969 3 783 2 144 4 374 10 054 the first half of FY2026, as well as the commercial capacity in South Africa estimated at 7.7GW by year 1. The 2029 target is the cumulative target over the next three years, before deducting the fuel levy rebate from SARS. operation of Kusile Unit 6. end, presenting a structural shift in consumption 2. Eskom’s OCGT cost includes diesel storage and demurrage costs of R185 million (2025: R151 million; 2024: R95 million) incurred when patterns. Our largest cross-border customer, the not utilising the OCGTs. As OCGT production is significantly more expensive Mozal aluminium smelter in Mozambique, moved into than other generation sources, the use of OCGTs care and maintenance during March 2026, resulting will be progressively curtailed to ensure long-term in a significant reduction in electricity demand from financial sustainability and alignment with our FY2027, reinforcing the need to accelerate initiatives decarbonisation objectives. Looking ahead, we aimed at retaining strategic load and developing new have budgeted for a reduced load factor of 3% on sources of demand. both Eskom and IPP-owned OCGTs from FY2027 onwards, rising again to 5.5% in FY2030. This trajectory aligns with the expected improvement PR F or information on tariff relief measures in generation plant availability, together with the implemented for smelter customers and commissioning of new renewable and dispatchable interventions to address declining sales volumes IPP capacity. refer to “Enhancing financial sustainability – Sales and revenue” from page 54 of this report In addition, non-technical losses are estimated to account for 13.1TWh for the year (2025: 14.9TWh), representing just over 7% of sales. Non-technical losses arise from the theft of electricity, including illegal connections, meter tampering and the use of illegal electricity tokens on prepaid meters. Non- technical losses are not included in the sales volumes reflected above. PR Interventions to address energy losses are discussed in more detail under “Energy losses and equipment theft” from page 27 later in this section 20 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Strengthening our infrastructure continued GENERATION PERFORMANCE GENERATION RELIABILITY AND SUSTAINABILITY PLAN To meet the country’s energy demands and provide electricity at a reasonable price, we continue to operate Eskom’s Generation Recovery Plan, originally launched in March 2023, delivered measurable improvements in 30 base-load, mid-merit, peaking and renewable power stations, with a total nominal capacity of 47 378MW. plant availability and system stability, while laying the foundation for deeper structural reforms. The most notable The 100MW Sere Wind Farm and four small hydroelectric stations are included in this capacity, although these are achievement was a reduction in loadshedding from a high of 329 days in FY2024 down to only four days of not considered for capacity management purposes. The median age of our coal-fired stations exceeds 40 years. loadshedding during evening peaks in April and May 2025. EAF levels over 70% were also achieved on multiple occasions, with levels as high as 82% seen in recent weeks.  etailed information on the installed and nominal capacity of our power stations, as well as IPP capacity, is set out PR D The plan was significantly refocused and expanded in FY2026 to transition from short-term recovery of plant on pages 75 to 77 in the supplementary information of this report availability to long-term reliability, sustainability and operational excellence, culminating in the launch of the Generation Reliability and Sustainability Plan. Target Target Target Target Actual Actual Actual Our average EAF target of 68% for FY2027 aligns to the FY2027 shareholder compact, rising to 70% from Measure and unit 20291 2027 2026 met? 2026 2025 2024 FY2028 onwards. Building on the gains achieved in recent years, the drive is to continue to entrench the Energy availability factor (EAF), % SC 70.00 68.00 70.00 65.16 60.60 54.56 principles of reliability and sustainability across the business. Planned capability loss factor (PCLF), % 10.50 10.50 10.50 11.55 12.76 12.04 Unplanned capability loss factor Operational reliability plan 18.00 20.00 18.00 22.88 26.05 32.34 (UCLF), % Other capability loss factor (OCLF), % 1.50 1.50 1.50 0.41 0.59 1.06 Focus areas Partial load losses, average MW n/a n/a n/a n/a 5 478 5 913 6 615 Reduce Improve outage Execute key Enhance people, Post-philosophy outage UCLF, % n/a n/a n/a n/a 24.31 29.69 31.61 number planning and strategic plant, process Boiler tube failure rate (12-month of trips execution projects mindset n/a n/a n/a n/a 1.71 2.31 2.37 moving average), number • Address critical plant • Strategic partnerships • Invest in • Implement people, areas with cross- (OEMs, utilities) refurbishment plant and process Unplanned automatic grid separations n/a n/a n/a n/a 570 699 593 cutting issues across • Contract management projects at key mid-life interventions to (UAGS trips), number multiple stations and assurance stations to ensure address root causes 1. Future targets shown as n/a are dependent on system performance. • Execute projects to long-term plant leading to unreliability • Technology, artificial resolve inherent trip intelligence sustainability • Leadership TECHNICAL PERFORMANCE The improved performance includes Kusile Unit 5, risks and eliminate • Continue with development focus • Procurement and We use a range of performance indicators to monitor which became official for measurement purposes single points of failure Koeberg long • Technical development availability of spares the health and reliability of our generation fleet: from 1 July 2025, one year after going into commercial term operations focus • EAF: The percentage of time the plant is available operation. The final unit at Kusile, Unit 6, achieved refurbishments • Embed operational to generate electricity commercial operation on 29 September 2025, adding • Expedite key projects excellence principles • PCLF: Reflects the proportion of capacity installed capacity of 799MW to the grid. This unit to ensure compliance unavailable due to planned maintenance will become official for measurement purposes from to Minimum Emission October 2026. • UCLF: Capacity lost due to unplanned outages or Standards (MES) breakdowns The average energy utilisation factor (EUF) for coal- • OCLF: Accounts for losses outside of operational fired stations has improved to 76.90% (2025: 91.85%), Outcomes control, such as environmental or external reflecting the improved performance of our coal-fired constraints stations, now only marginally above the international • Reduced trips • Improved outage • Reduced UCLF • People health index norm of around 75% for a fleet of this age. readiness • Improved PCLF • Organisational The EAF of 65.16% for the year is significantly • Improved due-date • Reduced emissions effectiveness index higher than last year (2025: 60.60%), although still These performance trends highlight the importance • Performance below the shareholder compact target of 70%. This of midlife refurbishments, predictive maintenance and digital diagnostics to extend asset life and improve • Reduced PO-UCLF improvement is largely due to a decrease in total unplanned losses (UCLF and OCLF), together with a reliability. Our collective focus remains on further • Improved outage reducing unplanned unavailability to consistently duration decrease in planned maintenance (PCLF). overcome the need for loadshedding. Our target is to achieve an average EAF of 68% in FY2027, and 70% by the end of FY2028 and FY2029. 21 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Strengthening our infrastructure continued The focus of the plan is on four areas: The deferment of 21 outages from FY2026 to ADDRESSING UNPLANNED LOSSES • Improving plant reliability by reducing unplanned FY2027 resulted from a combination of operational, Despite intensified efforts, addressing high levels of Six stations achieved a failure rate less than or unavailability technical and resource-related considerations. unplanned unavailability remains a critical challenge. equal to one failure per unit per year, these • Enhancing outage planning and execution These included optimised outage sequencing While UCLF has improved compared to the previous being Camden, Kendal, Kriel, Kusile, Matimba following delays on other units, revised maintenance year due to a reduction in both full and partial load and Medupi. • Executing strategic projects philosophies, prioritised recovery initiatives, outage losses, persistent issues continue to drive elevated • Embedding a people, plant and process mindset readiness constraints, availability of critical spares, levels of UCLF. Six units have achieved more than two years This effort draws on lessons learned from past and alternative operational opportunities. Technical since the last boiler tube failure affecting assessments confirmed that planned maintenance Contribution to UCLF, % UCLF. These are Camden Unit 4, Kendal loadshedding events, insights from the National Energy Crisis Committee (NECOM) engagements, could be safely deferred. The deferred outages have Units 5 and 6, Matla Unit 1, Medupi Unit 3 1.42 as well as support from OEMs and external utilities. been incorporated into the FY2027 outage plan and Tutuka Unit 3. 2.10 to support sustained fleet performance, optimise Midlife refurbishments resource allocation and maximise generation 2.23 Major refurbishment projects are being implemented availability. 22.88% 11.77 Full load losses due to major incidents at the mid-life stations, which include Kendal, Lethabo, In recent years, outage performance and recovery Medupi Unit 4 suffered significant damage in a Matimba, Majuba and Tutuka. The refurbishments will plans have been impacted by Eskom’s constrained generator explosion in August 2021. To enable the be done over a period of 10 years, based on priority liquidity position, which delayed the release of 5.36 unit to return to service while waiting for a new and optimal execution to achieve the planned plant funds. The situation improved considerably due to generator stator to be fitted during a future planned life. The refurbishments include: the financial support received under Government’s outage, a used stator from the Netherlands was • Electrostatic precipitator upgrade projects in Partial load losses Full load losses Outage slips installed as an interim measure, and the unit was debt relief programme, which provided cash flow Boiler tube leaks (excluding major events and slips) execution at Kendal, Lethabo and Tutuka units successfully synchronised to the grid in July 2025. The certainty for addressing debt servicing obligations, Unit trips • Nitrogen oxide (NOx) reduction retrofits at allowing operating cash flows to be utilised for critical unit was excluded from the nominal asset base from Majuba and Tutuka and then at Lethabo investment into our infrastructure. October 2023 until June 2025. Average partial load losses of 5 470MW are • Control and instrumentation, and switchgear lower than the previous year (2025: 5 913MW), replacement are in progress at Matimba PR For more on the Government’s debt relief contributing to the improved system performance. The return of Medupi Unit 4 EXECUTING PLANNED MAINTENANCE programme, refer to “Enhancing financial Nevertheless, these losses contributed 11.77% to sustainability – Government support” on page 60 of UCLF (2025: 12.79%), accounting for half of total marks a major milestone Our planned maintenance remained within established norms throughout the year, restoring the this report unplanned losses. Outage slips contributed 2.23% in our strategic objective reliability of our generation fleet through disciplined to overall UCLF (2025: 1.98%), despite post-outage of achieving operational maintenance practices. UCLF decreasing marginally as discussed above. Post-outage performance Unit trip performance has improved, with 570 trips stability through the addition Post-outage performance, measured over a 60- of 2 500MW to the grid. Outage planning is informed by system capacity during the year (2025: 699). day period following unit synchronisation after constraints, plant-specific risk profiles and the maintenance, remains a key focus area. The post- Eskom remains committed availability of critical spares and skilled resources. The boiler tube failure rate (failures per unit per year) outage UCLF for the year was 24.31% (2025: 29.69%). improved slightly to 1.71 for commercial units using to restoring performance, A total of 63 outages were scheduled for the year, Though improving, it remains significantly higher than of which we successfully completed 31. Eight were a 12-month moving average (2025: 2.31), with boiler strengthening oversight and the aspiration level of 14%. This performance gap tube failures contributing 2.25% to UCLF (2025: in execution at year end, 21 had been deferred highlights the need for continued improvement in the ensuring accountability to FY2027 and three had been cancelled, with 2.77%). quality of outage planning and execution to improve from service providers. – the required work completed under alternative post-outage performance. We are addressing outage windows. In addition, short-term corrective Dan Marokane, Group these challenges through partnerships with original interventions were implemented to mitigate emerging equipment manufacturers to ensure that appropriate Chief Executive. risks and prevent potential availability losses, outage strategies are executed. underscoring the agility of our maintenance teams in responding to dynamic plant conditions. 22 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Strengthening our infrastructure continued Tutuka Unit 6 remains on extended inoperability Unit 2 continues to operate since being synchronised oversight. This includes internal governance by Eskom During the year, 1 070MW of new IPP capacity was following the air heater fire incident in November in March 2025 following a reactor trip, with an EAF of executives and independent assurance from national commissioned. We continue to collaborate with 2023. The recovery plan led by the original equipment 99.65% for the year. Unit 2 experienced an automatic and international regulatory and peer review bodies. partners across Government and the private sector manufacturer (OEM) is well advanced and the unit is reactor trip on 10 April 2026, and the unit’s planned These mechanisms provide us with a holistic view of to accelerate delivery and improve procurement expected to return to service by October 2026. refuelling commenced on 26 April 2026; the unit nuclear safety performance. efficiency to allow IPPs to play a vital role in securing is anticipated to return to service by the end of South Africa’s energy future. Matla Unit 6 suffered an incident in December 2024 September 2026. Eskom remains an active member of the World due to the rupture of a high-pressure steam pipe Association of Nuclear Operators (WANO), while above the transformer. The unit was removed from Long-term operation programme South Africa continues its membership in the the nominal base for reporting purposes and placed The long-term operation (LTO) licence for Unit 1 was International Atomic Energy Agency (IAEA). These in extended inoperability from 1 July 2025. The unit is granted by the National Nuclear Regulator (NNR) affiliations enable Eskom to: expected to return to service in September 2026. on 15 July 2024. The unit is now licensed to continue • Align with international safety and operational operating until July 2044. Unit 2 was granted its LTO standards At Arnot Unit 2, the Toshiba turnkey contract for licence extension on 6 November 2025 allowing it to • Participate in peer reviews and performance the stator rewind is 76% complete, with the stator continue operating until November 2045. benchmarking frame pressure test having confirmed mechanical integrity, representing a significant reduction Koeberg is well into the LTO operation, with • Access global best practices and technical expertise in technical risk. The unit is cleared to proceed scheduled maintenance and upgrades being • Support the continuous development and training with rewind activities, with the return to service performed in line with the licence requirements. of nuclear personnel expected by December 2026. These activities will be tracked as part of business-as- The NNR’s decision to grant the 20-year licence usual activities over the extended operating lives of Other losses extensions to both Koeberg units reflect its both units. Poor coal quality accounted for 0.26% OCLF for confidence in Eskom’s safety case and operational the year (2025: 0.37%), with most losses being Following the steam generator replacement outages readiness. experienced at Matla. OCLF has improved in the and capacity testing, the maximum continuous rating new year due to initiatives which have improved the application for Units 1 and 2 has been approved and ENERGY SUPPLIED BY IPPS coal quality at Matla, including mixing coal from the the nominal capacity of both units was rerated to We procure energy from IPPs through a range tied colliery with other higher-quality coal, and the 940MW in March 2026 (from 924MW for Unit 1 and of government-led programmes. These initiatives opening of the New Mine 1 at Matla Coal. 930MW for Unit 2). diversify the national energy mix towards cleaner sources, strengthening system resilience, and As part of the licence requirements, we continue advancing the transition to a more competitive  efer to “Interacting with the environment – PR R working with the NNR to establish a ring-fenced electricity market. Securing our resource requirements” on page 32 nuclear decommissioning fund. This will ensure of this report for details of the opening of the new We had 117 power purchase agreements (PPAs) in that sufficient financial resources will be available mine at Matla Coal place through NTCSA at year end, representing total to fund Koeberg’s decommissioning costs in line with international best practices and regulatory contracted capacity of 9 767MW. Of these, energy KOEBERG PERFORMANCE requirements. To date, we have set aside R2.9 billion was supplied by 104 renewable energy projects Koeberg Nuclear Power Station continues to (including interest) in this regard (2025: R2.6 billion). with combined capacity of 7 355MW under the operate safely and reliably, delivering the lowest Renewable Energy IPP (RE-IPP) Programme. NTCSA marginal primary energy cost among Eskom’s Nuclear safety also procures capacity from two IPP-owned OCGTs base-load generation assets. The station remains an We uphold a robust nuclear safety culture built on with capacity of 1 005MW, together with the Risk indispensable contributor to South Africa’s energy a defence-in-depth approach, with multiple layers Mitigation IPP Procurement Programme (RMIPPPP) security and decarbonisation objectives. of controls across all nuclear operations. Safety with a capacity of 205MW. and security remain paramount in every aspect Unit 1 has remained online since synchronising the of Koeberg’s activities, ensuring the protection of PR For a breakdown of IPP operational capacity by unit on 29 October 2025 after its planned refuelling personnel, the public and the environment. Nuclear source, refer to “Plant information” on page 76 in the outage. This year it operated at an average EAF of safety is governed by a comprehensive framework supplementary information of this report only 41.31% due to the unit being out of service for of objectives, policies and procedures, which seven months for its outage. are continuously validated through multi-layered 23 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Strengthening our infrastructure continued ENERGY CAPACITY AND PURCHASES Emergency Generation Programme: Allows for the Round 3: Five preferred bidders (616MW) for sites Available IPP capacity and details of energy procured under various IPP programmes is set out below. procurement of energy from existing generators at in the Free State were announced in May 2025. The prices below Eskom’s marginal cost of generation. conclusion of PPAs with the preferred bidders is Target Target Target Target Actual Actual Actual This programme allows suppliers to bid their price expected in October 2026. Measure and unit 20291 2027 2026 met? 2026 2025 2024 and volume, with NTCSA selecting offers based on Total capacity, MW 13 362 10 601 10 188 8 565 7 495 7 495 system needs and cost-effectiveness. Six contracts Gas-to-Power Programme were awarded, with two projects (160MW) In October 2025, DEE issued an amended request for Total energy purchases, GWh 84 864 26 338 28 307 19 596 19 366 20 183 operational during FY2025. However, these contracts proposals to procure 2 000MW of land-based gas- Total spent on energy, R million 216 573 64 119 60 408 46 785 47 274 49 407 and their associated approvals expired in March 2025. fired capacity at various sites. The preferred bidder Lease accounting adjustment, R million2 (7 679) (2 983) (1 631) n/a (1 631) (1 631) (1 632) Applications to extend the programme have been announcement is anticipated by the end of October Total expenditure, R million 208 894 61 136 58 777 45 154 45 643 47 775 submitted to DEE, but approval in the short term is 2026, after bids closed on 29 May 2026. unlikely given the current surplus capacity. Weighted average cost, c/kWh3 255 243 213 239 244 245 DEE has requested NTCSA to consider a Battery Energy Storage IPP Programme consolidated 6GW gas programme to kickstart a local 1. The 2029 target is the cumulative target over the next three years. gas industry. Studies are underway to investigate an 2. For accounting purposes, the fixed capacity charges for the Avon and Dedisa IPP OCGTs are treated as arrangements that contain a (BESIPPP) lease in terms of IFRS 16. Refer to note 2.8 in the financial statements for the related accounting policy. appropriately sized gas generation plant that would Round 1: The projects of five preferred bidders support the bankability of a gas import terminal. 3. The weighted average cost is calculated on the total amount spent on energy, before deducting the lease adjustment. (513MW) are in construction. Three projects are anticipated to achieve commercial operation in CROSS-BORDER POWER IMPORTS AND  efer to “Interacting with the environment – Investing in renewable energy” on page 39 for more information on PR R January 2027, one in February 2027 and one in EXPORTS energy supplied by renewable IPPs October 2027. We actively participate in the Southern African Power Pool (SAPP), which facilitates coordinated Round 2: Eight preferred bidders (615MW) for sites in planning and operation of the interconnected power the North West were announced in December 2024. PROGRESS ON IPP PROGRAMMES Risk Mitigation IPP Procurement Programme systems of its nine member countries. This regional The PPAs for two projects totalling 153MW achieved RE-IPP Programme (RMIPPPP) collaboration supports reliable and cost-effective commercial close in June 2026. The remaining Under this programme, three Scatec Kenhardt electricity supply across Southern Africa. Bid window 5: Of the 11 projects (1 159MW) that projects are anticipated to achieve commercial close reached legal close, 10 projects (1 075MW) have battery storage projects totalling 150MW went into by the long stop date of 31 December 2026. achieved commercial operation during the year, commercial operation in FY2023. The remaining and one project (84MW) is anticipated to achieve projects (278MW) have experienced delays during commercial operation by September 2026. construction and are expected to achieve commercial Target Target Target Target Actual Actual Actual operation during FY2027. Measure and unit 20291 2027 2026 met? 2026 2025 2024 Bid window 6: Of the six preferred bidders Eskom’s short-term procurement programmes International sales2 33 343 11 926 10 809 13 324 14 532 10 362 (1 000MW) one project (120MW) achieved During FY2023, Eskom launched two short-term International purchases 3 066 1 021 4 770 4 090 7 570 9 150 commercial operation in May 2026, while the second project (240MW) is anticipated to achieve procurement mechanisms to address capacity Net sales 30 277 10 905 6 039 9 234 6 962 1 212 commercial operation in November 2026, the shortfalls when required. remaining four projects received further extensions 1. The 2029 target is the cumulative target over the next three years. Standard Offer Programme: Enables Eskom to 2. The targets for international sales in 2027 and 2029 include sales to the Mozal smelter in Mozambique. Without the Mozal sales, the to December 2026 to reach commercial close. targets would be 3 608GWh and 8 389GWh respectively. purchase energy from customers or generators Bid window 7: The Department of Electricity and with surplus capacity at the avoided cost of Eskom Energy (DEE) announced 16 preferred bidders generation. The Standard Offer sets a fixed price (3 940MW solar PV) from three tranches of this bid at which suppliers can choose to sell to NTCSA. window. They are in various stages of approval, Applications totalling 1 037MW were approved in FY2025. No energy is being delivered under this programme at present. 24 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Strengthening our infrastructure continued INTERNATIONAL SALES INTERNATIONAL PURCHASES Target Target Target Target Actual Actual Actual International sales include sales to the Mozal aluminium International purchase volumes (imports) decreased Measure and unit 2029 2027 2026 met? 2026 2025 2024 smelter in Mozambique. The smelter's closure in March by 46% year-on-year mainly due to lower production 2026 removed a large, stable base-load customer from from Hidroelèctrica de Cahora Bassa (HCB) due to Number of system minutes lost <1, 3.29 3.53 3.53 3.10 4.37 3.29 Eskom’s planning assumptions. This will further reduce the drought in that region. For FY2027, we had been minutes SC, 1 planned sales by around 41.6TWh over the next five notified that HCB would be refurbishing their plant Number of major incidents >1 minute, 2 2 2 2 4 1 years, with approximately R39 billion in potential and had anticipated lower imports. However, the number revenue foregone over that period. refurbishment has since been delayed. System average interruption duration 34.50 35.50 37.50 35.09 34.91 34.88 index (SAIDI), hours SC, 2 NTCSA forms part of the Mozal working group GROWING OUR POWER EXPORTS System average interruption frequency 11.00 12.00 14.50 11.72 11.70 11.69 convened by the Industrial Development Corporation NTCSA continues to seek opportunities to sell excess index (SAIFI), events SC, 2 of South Africa (IDC), which is seeking to find a power into Southern African, based on the availability Restoration time, %3 91.5 91.5 91.5 93.4 93.5 93.1 viable solution to resuming Mozal operations. It must of excess supply in the South African power system. Distribution energy losses, % SC 11.33 11.33 11.33 10.54 10.42 9.92 be noted, however, that sales to Mozal were below NTCSA has launched a cross-border bilateral 1. One system minute is equivalent to interrupting the whole of South Africa at maximum demand for one minute. Eskom’s marginal cost of generation because of the agreement sales pilot programme from October 2. The measurement of SAIDI and SAIFI was affected by data limitations during the year, arising from the transition to a new operational lower negotiated pricing agreement tariff applicable. 2025 to March 2027, which enabled the sale of power tracking system in Distribution during August 2025, which resulted in the use of three-year historical averages to calculate the values As such, the retention of sales to Mozal will be on a non-firm basis to new customers, mainly based reported for FY2026. 3. Restoration time considers the time it takes to restore supply during an unplanned outage by measuring the percentage of dispatched focused on retaining critical strategic load, thereby in Zambia. Non-firm power availability is confirmed work orders where power is restored within 7.5 hours. avoiding premature underutilisation of coal-fired on a day-ahead basis and is suspended immediately power stations, recovering unavoidable fixed costs when supply constraints arise. of generation and reducing the risk of contractual  eloitte has qualified the FY2026 values reported for SAIDI and SAIFI on the basis that the process to determine IR D exposure to take-or-pay obligations under existing STRENGTHENING REGIONAL ENERGY the values does not align to the method set out in the Eskom’s approved internal measurement specification coal supply agreements. COOPERATION documents. For more information, refer to the discussion under “Sustainability indicators selected for reasonable NTCSA is actively pursuing a short-term energy assurance” on page 103 of the integrated report, as well as “Independent sustainability assurance report by Deloitte purchase programme from cross-border utilities and & Touche” from page 105 of the report PR F or information on tariff relief measures IPPs, to alleviate domestic supply constraints when implemented for smelter customers and they occur. These regional procurement efforts form interventions to address declining sales volumes refer to “Enhancing financial sustainability – Sales and part of our strategy to diversify generation supply revenue” from page 54 of this report sources, enhance grid stability and reduce reliance on expensive emergency generation alternatives. International sales volumes decreased by around NETWORK PERFORMANCE 8% year-on-year due to cash-flow constraints NTCSA’s transmission network forms the backbone experienced mainly by Zimbabwe Electricity of South Africa’s electricity supply, ensuring the safe Transmission and Distribution Company (ZEDTC) and efficient delivery of power nationwide. High and ZESCO of Zambia. However, sales volumes voltage lines carry energy from our power stations, were higher than budget due to improved Eskom while an extensive distribution system delivers generation performance which enabled new sales electricity from both the transmission network and opportunities to supply to cross-border customers: independent power producers (IPPs) to customers. • Increased sales to Botswana Power Corporation In addition, we supply redistributors (municipalities under the new firm power supply agreement for and metros), who manage their own local distribution 300MW concluded on 1 April 2025 networks. • Increased sales to NamPower under the firm power supply agreement for 150MW concluded PR Detail of our transmission and distribution on 1 April 2025, with an increase in firm supply to infrastructure is set out in the supplementary 230MW from October 2025 to March 2026 information on page 77 of this report • Increased sales to SAPP markets 25 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Strengthening our infrastructure continued TRANSMISSION NETWORK PERFORMANCE DISTRIBUTION NETWORK PERFORMANCE We have moved beyond short-term mitigation to We are also targeting the rollout of 5.4 million smart There was a notable year-on-year improvement in Distribution network performance, assessed through a sustainable eradication model, built on integrated meters by FY2028, as part of a broader programme the system reliability performance for system minutes the frequency and duration of customer interruptions interventions, including: that supports revenue protection, an enhanced lost <1. All reported technical KPIs met their year-end and the speed of supply restoration, remained stable • Accelerated smart meter rollout – there needs customer service improvement, improved demand targets, with each showing progress relative to the and continued to outperform targets. Nonetheless, to be at least 30% penetration of smart meters management, reduced non-technical losses and a previous financial year. electricity theft – through illegal connections, meter per feeder line before load reduction is no longer future-ready smart grid. The key components as tampering, and ghost vending – remains a significant necessary part of the advanced metering infrastructure (AMI) To drive a turnaround in technical performance, financial and operational burden. In addition, deployment include installation of smart meters • Targeted network strengthening and electrification, NTCSA implemented a focused five‑point plan. overloaded networks and transformers, particularly in with two-way communication to Eskom’s systems, including normalisation of illegal connections, This involved accelerating the replacement of densely populated and informal settlements, coupled as well as integration of data concentrators, head- funded by the Integrated National Electrification high‑risk assets, fast‑tracking redundancy projects, with theft and vandalism of infrastructure, place end systems and meter data management. The Programme (INEP) strengthening maintenance execution, improving considerable strain on the system. These pressures establishment of a Smart Meter Operations Centre spares availability and enhancing the security of critical • Behavioural change driven by enforcement of zero contribute to higher levels of system interruptions will include centralised monitoring for real-time grid substations and lines. tolerance towards illegal behaviour, supported by and divert resources away from planned maintenance, visibility, outage management and fraud detection. community engagement network faults and other critical operational priorities. Once fully operational, the integrated system will Two major incidents occurred in the first quarter of The results in those provinces showing early success help to reduce load limiting, prevent meter tampering the year, with no events reported for the remainder clearly demonstrate that eradication of load reduction and manage customer debt through remote of the year. The first, in April 2025 within the PR Refer to “Energy losses and equipment theft” on page 27 later in this section for more information on is achievable and sustainable when these levers are disconnections. Western Grid, resulted in 1.77 system minutes lost due to a line fault caused by hardware failure. The our efforts to reduce energy losses applied together. To this end, we installed a total of 610 223 second, in May 2025 at the Bighorn Substation in the smart meters during FY2026, directly relieving Northern Grid, accounted for 1.65 system minutes PROGRESS ON EFFORTS TO ERADICATE LOAD PR For further information on load reduction and approximately 108 000 customers from load lost following the failure of a current transformer. REDUCTION the effect on communities, refer to “Sustaining reduction during peak periods. The rollout of smart communities – Evolving business model” on page 42 meters fell short of our target for FY2026, largely TRANSMISSION DEVELOPMENT PLAN Despite our improved generation performance, in this report because of community stoppages and adverse The focus of the TDP remains on accelerating project electricity theft and illegal connections in certain areas cause overloading of the system that can cause weather, and we have rephased the programme into development and execution to extend transmission network failures. To mitigate against this, Distribution NETWORK SUSTAINABILITY FY2027 to recover the shortfall. lines and transformer capacity to enable the grid connection of 56GW in new generation capacity continues to implement load reduction in these To support long-term network sustainability and areas to protect the network against overloading enable future revenue growth, we plan to strengthen REGISTERING SMALL-SCALE EMBEDDED by 2034. Key risks to delivery include contractor GENERATION SYSTEMS performance, community unrest, challenges in and equipment failure. Eskom is committed to the distribution network through the construction of eradicate the need for load reduction and has made around 1 800km of lines over the next five years. This Eskom is encouraging customers to register their securing servitude access, and delays in awarding small-scale embedded generation systems (SSEGs). major contracts. demonstrable progress in this regard. investment is crucial to: This is to protect our customers and their homes, • Accommodate growing distributed energy To date, seven provinces – Western Cape, Northern as well as the electricity network and our field staff. resources and embedded generation  efer to “Delivering capacity expansion” on page 28 PR R Cape, Free State, North West, Mpumalanga, The registration of SSEGs, like solar PV, adds an extra Limpopo and Eastern Cape – were load-reduction • Improve service reliability layer of safety and ensures everything is installed and later in this section for more information on the TDP free and more than 1.2 million customers nationally • Reduce technical losses tested by accredited professionals. SSEG systems had been relieved of load reduction. The remaining • Enable customer-centric innovations such as smart that operate in parallel with the grid can cause risks load reduction is highly concentrated in the Gauteng metering and microgrids if not properly installed and tested. Registrations and KwaZulu-Natal provinces. Gauteng alone before 30 September 2026 are free and include the accounts for more than half of the remaining feeders installation of a free smart meter. and affected customers, making it the critical path to national eradication of load reduction by March 2027. For more information on registering a solar system, visit www.eskom.co.za/distribution/small-scale- embedded-generators/ 26 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Strengthening our infrastructure continued ENERGY LOSSES AND EQUIPMENT THEFT • Collaborating with service providers, meter THEFT OF CONDUCTORS, CABLING AND The final unit at Kusile, Unit 6, achieved commercial Eskom continues to face significant energy losses manufacturers, local political leadership, law NETWORK-RELATED EQUIPMENT operation on 29 September 2025, adding installed across our networks, comprising both technical and enforcement agencies and industry associations to Theft of overhead aluminium conductors, copper capacity of 799MW to the grid. Despite the final non-technical components. solicit support cables and pylon components continues to disrupt rated capacity of the unit being 1MW lower than operations. We have deployed advanced intrusion planned, the unit is considered to have been delivered Technical losses result from energy dissipated as The following key actions have been implemented detection systems at substations, replaced stolen in line with expectations. heat when electricity flows through transmission to strengthen physical security, cyber resilience and copper with lower-value alternatives and intensified transformers and other network equipment. These operational controls over the online vending system: intelligence-led disruption operations. Despite We installed 270.8km of transmission lines during losses are influenced by network design, conductor • Tighter physical access controls to secure vending these interventions, theft of conductors, cabling the year, less than the 400km target. This was resistance, asset condition and load profiles. environments and network-related equipment resulted in losses due to a combination of sustained contractor • Enhanced cyber security tools and monitoring to of R86 million from 1 333 incidents during the underperformance, contractor financial constraints Non-technical losses, however, remain the dominant and procurement delays that led to later than planned prevent unauthorised access year (2025: R77 million from 1 585 incidents). We concern. These include losses resulting from contract awards on key projects. • Stronger user-access controls with weekly continue to collaborate with other state-owned electricity theft, illegal connections, meter tampering dashboards flagging irregularities companies, industry stakeholders, the South African and bypassing, ghost vending (the purchase of The most significant shortfall was recorded on • Expanded investigative measures, conducted in Police Service (SAPS) and the National Prosecuting fraudulent prepaid tokens) and billing inaccuracies. the Ariadne-Eros 400kV line, where contractor collaboration with law enforcement Authority (NPA) to strengthen enforcement and These activities not only erode revenue but also financial constraints and continued contractor prosecution. These efforts contributed to the decline compromise network integrity (overloading) and • Advancing the rollout of smart meters with underperformance severely restricted progress, in incidents and led to 95 arrests during the year public safety. These losses have material financial and advanced metering infrastructure, which will achieving only 29km against a planned target of 165km. (2025: 73 arrests). operational implications, particularly in the context of contribute to preventing illegal vending. This To address this, the contractor’s payment terms were constrained supply and rising infrastructure costs. includes advanced online monitoring systems revised to support improved cash flow. Construction DELIVERING CAPACITY EXPANSION and reconciliation methods to validate meter teams have been strengthened through enhanced The total energy losses percentage increased slightly Since the inception of our capacity expansion transactions supervision and a structured review of the sequencing to 12.45% (2025: 12.34%), with distribution losses programme in 2005 to 31 March 2026, we • Acceleration of a new, secure vending platform to of work to ensure efficiency and quality. Parallel accounting for 10.54% and transmission losses for have increased installed generation capacity by replace the current online vending system execution of the stringing of 50km of transmission lines 2.2% (2025: 10.42% and 2.35% respectively). Total 17 127MW. The new build programme is on track for this project will be executed by two contractors, distribution energy losses amounted to 19.7TWh, of for completion by FY2028. We have also extended These interventions have allowed Eskom to recover each responsible for separate sections. which two-thirds – or 13.1TWh – were attributed to high-voltage transmission lines by 9 186km and revenue of R55 million from customers relating to non-technical losses (2025: 14.9TWh out of 20.5TWh). enhanced transmission substation capacity by The transformer capacity installed and commissioned non-technical energy losses (2025: R59 million) and to The cost of these non-technical losses, based on the 46 148MVA since then. exceeded the target, supported by the successful reduce non-technical losses going forward. variable cost of coal-fired production, was estimated delivery across both capital and self build programmes at R6.6 billion for the year (2025: R7.1 billion). The REDUCING TECHNICAL LOSSES at various sites. associated revenue loss is much greater. To mitigate technical losses, we continue to implement targeted interventions on medium-voltage Target Target Target Target Actual Actual Actual CURBING NON-TECHNICAL LOSSES networks, including: To curb non-technical energy losses, a multi-pronged Measure and unit 20291 2027 2026 met? 2026 2025 2024 • Correction of voltage phase imbalances on feeders approach is applied through several interventions: • Network reconfiguration to optimise load Generation capacity installed and • Performing physical audits and fixes commissioned (commercial n/a n/a 800 799 799 – distribution • Reducing the number of zero buyers (customers operation), MW • Replacement of ageing infrastructure contributing Transmission lines installed, km SC 3 360.0 500.0 423.0 270.8 292.6 74.4 who were either buying tokens from ghost to elevated losses vendors or had tampered with their meters) and Transmission transformer capacity 30 000 6 000 3 750 4 000 2 620 23 installed and commissioned, MVA SC investigating customers with low usage These measures are aligned with our broader grid • Conducting customer education campaigns modernisation strategy and are essential to improving 1. The 2029 target is the cumulative capacity or lines to be installed and/or commissioned over the next three years. about the dangers of illegal connections and the operational efficiency, reducing losses and enhancing consequences of tampering and illegal vending financial sustainability. • Engaging with community leaders to promote awareness, encourage legal connections and foster shared responsibility for infrastructure protection and safe electricity use 27 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Strengthening our infrastructure continued TRANSMISSION DEVELOPMENT PLAN MEDUPI AND KUSILE PROJECT OTHER PROJECTS NTCSA is committed to increasing grid capacity and ensuring grid stability to support the grid connection of PERFORMANCE MEDUPI FLUE GAS DESULPHURISATION much-needed new renewable generation capacity. The TDP sets out the capital investment strategy to facilitate All Kusile units are now in commercial operation. RETROFIT these grid connections and represents the most ambitious infrastructure expansion initiative in Eskom’s history. The second phase of the ash dump project was Medupi’s business case committed to retrofit wet successfully completed to enable ashing space to flue gas desulphurisation (FGD) technology within six The plan underscores the urgent need to construct approximately 14 500km of new high voltage transmission support all six units in operation. The focus is now years of each of its unit’s commissioning, aligned with lines and the commissioning of 132 650MVA transformer capacity by 2034, a critical step in unlocking grid on completing the remaining balance-of-plant scope, scheduled general overhaul outages. The installation capacity and enabling the integration of 56GW of new generation capacity. Expansion efforts are being closing out contracts, resolving contractor claims and of this technology will enable Medupi to reduce prioritised in regions with the greatest demand and potential. disputes. sulphur dioxide emissions in line with South Africa’s Under the TDP, the focus remains on accelerating project development and execution through innovative project atmospheric emission licence requirements. Medupi Unit 4 was returned to service with a used delivery models, including public-private partnerships and the Independent Transmission Projects programme. generator stator on 6 July 2025. The project remains in the tendering phase, with the These initiatives are designed to attract private investment, share risk and expedite execution, while maintaining request for proposal for the project and the closing system integrity. Capital affordability is influenced by NERSA’s decision on the MYPD 6 application, considering date extended to February 2026 following requests the restriction on borrowings under Government’s debt relief programme. PR For more information on the return to service of Medupi Unit 4, refer to “Full load losses due to major from bidders. As reported previously, the revised GROUP FUNDED CAPITAL EXPENDITURE (EXCLUDING CAPITALISED BORROWING COSTS) incidents” on page 22 earlier in this section cost estimate is R41.7 billion, reflecting inflationary pressures and market dynamics. Tender evaluations Target Target Target Actual Actual Actual are expected to be completed by February 2027, Area, R million 20291 2027 2026 2026 2025 2024 The main ERA extension was approved for including proactive assurance. The environmental conclusion by December 2026, while the full project impact assessment for the waste disposal facility is in Generation plant 66 114 27 000 27 953 26 654 26 683 26 531 finalisation date remains December 2027. A review Transmission network 80 033 10 192 9 800 7 931 6 473 4 269 progress, as is the procurement process to appoint is in progress to ensure that all projects will be the owner engineer and project management team. Distribution network 31 180 12 056 8 980 6 567 4 112 2 879 completed within the approved timeframe. Subtotal: infrastructure investment 177 327 49 248 46 733 41 152 37 268 33 679 In compliance with the station’s Minimum Emission Medupi and Kusile projects concluded negotiations Standards (MES) exemption, Eskom has prepared an Future coal and nuclear fuel 9 728 3 407 3 594 2 913 3 011 2 769 with Mitsubishi Heavy Industries Ltd, the boiler updated cost benefit analysis, which was submitted Other support areas and intergroup eliminations 4 658 1 870 1 703 922 855 573 contractor on both projects, to close out the for consideration to the Department of Forestry, Total group funded capital expenditure2 191 713 54 525 52 030 44 987 41 134 37 021 contract during the first half of the year. A settlement Fisheries and the Environment (DFFE) in April 2026. agreement was signed on 25 June 2026, which DFFE has requested further modelling to support 1. The 2029 target is the cumulative capital expenditure targeted over the next three years. An amount of R54.5 billion is targeted in addressed all outstanding claims, disputes, deductions, their review, with the updated report targeted for 2027, with R65.5 billion in 2028 and R71.7 billion in 2029. variations and defect-related matters. As a result, no 2. Capital expenditure includes additions to property, plant and equipment, intangible assets and future fuel, but excludes strategic completion by February 2027. The study shows a high spares, construction stock and capitalised borrowing costs. Figures noted above are based on internal reporting and do not necessarily further payments are required for these matters, and financial cost of FGD compared to relatively limited align to the movement on property, plant and equipment as disclosed in note 8 in the annual financial statements. all existing claims and disputes between the parties health benefits. Any changes in the approach to FGD have been fully and finally resolved. The contractor is will be discussed with all relevant stakeholders. Capital expenditure was R7 billion lower than target due to: currently completing the remaining obligations under • Under spending on refurbishments, including the smart metering refurbishment programme experiencing the agreement. several delays due to operational challenges and community disruptions PR F or more information on the Medupi FGD, refer to “Interacting with the environment – Compliance • Generation experienced procurement delays on several technical plan and refurbishment projects, including with Minimum Emission Standards” on page 36 in the Komati repurposing project and the conversion of OCGTs to gas this report • The battery storage project experienced slow progress on site works due to contractor challenges • NTCSA challenges include delays in appointing owners’ engineers for projects, delays in servitude registration at the Deeds Office and delays in payments for the relocation of houses on servitudes 28 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Strengthening our infrastructure continued The project team maintains regular communication • In February 2026, all expatriate personnel engaged ESKOM GREEN Eskom Green’s initial pipeline includes 17 high-priority with the World Bank regarding project progress and by the contractor on the Skaapvlei, Graafwater We launched Eskom Green on 9 June 2026 as a projects across our existing coal-fired power station status. Given that the project is currently scheduled and Paleisheuwel sites (395MWh daily capacity) dedicated utility-scale renewable energy business footprint, leveraging established infrastructure to for completion after the deadline contemplated in were deported due to not having valid visas and to accelerate renewable energy development and support faster deployment, cost efficiency and grid the World Bank loan arrangements, there remains work permits, and construction at the three support customers in achieving their decarbonisation resilience. These projects are expected to make a risk of a potential breach. We continue to engage sites stopped. Since then, all three project sites and energy transition objectives. Eskom Green about 6GW of carbon-free electricity available by constructively with the World Bank, which has remain closed, with the sites at 90%, 70%, and has been structured to provide the agility, funding FY2030, with an initial pipeline of 2GW of renewable indicated that it will undertake a mission review 40% completion respectively. Engagements with flexibility and partnership-based delivery model energy and pumped storage projects expected to by October 2026 to assess progress, challenges, the contractor have been held and they are set required for renewable energy development. advance from FY2027. Over the longer term, Eskom mitigation measures and potential next steps. to resume works at the three sites in FY2027, Green is aiming to deliver 32GW of cost-competitive with completion expected in FY2028. However, The foundation phase will focus on large clean energy and storage capacity by FY2040. Water for the first three units of Medupi’s FGD significant hurdles remain, so parallel contingency industrial customers in sectors such as mining and retrofits will be available from the existing Mokolo planning is underway to pursue alternate manufacturing, offering renewable energy solutions Dam. Implementation of the last three FGD units is through direct bilateral PPAs and section 34 IRP  efer to “Interacting with the environment – PR R contractual remedies, and possible alternate Investing in renewable energy” on page 39 for more dependent on an additional water supply line from service providers allocations. Its pricing model is intended to be information on the launch of Eskom Green Thabazimbi, implemented by the Trans-Caledon • Preferred bidders for the Melkhout and Rietfontein transparent, with network, wheeling and regulated Tunnel Authority, an agency of the Department of sites (146MWh daily capacity) were issued letters wholesale charges passed through at cost and shown Water and Sanitation. The construction tender for of acceptance. Following receipt of the letters, separately from the energy price. This will allow the Mokolo Crocodile Water Augmentation Project both bidders submitted requests for substantial customers to distinguish clearly between the cost of (MCWAP) Phase 2A was awarded early in FY2026, amendments, in terms of both contract price, a energy and the cost of using the network. with completion of this critical supply line being significant extension of the construction timeline anticipated by January 2030. and a relaxation of project stipulations. Our project BATTERY ENERGY STORAGE SYSTEMS funders have explicitly stated that they will not Our battery energy storage system (BESS) accept post-award negotiations. The two preferred programme is a central pillar of our strategy to bidders declined to proceed under the original modernise the national grid, enhance system tender terms, defaulting on the upfront conditions, flexibility, and enable greater integration of renewable and the contracts were consequently cancelled. energy. The initiative is co-financed by the World Revised bidding documents are being prepared, Bank, the New Development Bank and the African incorporating lessons learned from this and other Development Bank and is aligned with South Africa’s BESS sites to ensure a robust and successful energy transition objectives. contract award process The BESS programme directly addresses local system GAS CAPACITY challenges, including peak demand, grid congestion The Richards Bay gas project is in the development and renewable intermittency, while showcasing stage as part of Eskom’s longer-term generation the feasibility of large-scale storage deployment in expansion strategy, with four units totalling 3 000MW support of the national renewable energy strategy. being targeted. The envisaged private sector partner The first phase will deliver over 800MWh of daily is expected to be appointed in FY2028, with storage capacity. Status of the various sites are commissioning of all four units by FY2031. provided below: Following the Supreme Court of Appeal judgment in • The Hex, Pongola and Elandskop sites have been September 2025, which set aside the environmental commissioned with a daily storage capacity of authorisation for the project, the process for the new 292MWh environmental impact assessment application to DFFE has commenced. Approval of the EIA is anticipated by July 2027. 29 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Strengthening our infrastructure continued RESEARCH AND DEVELOPMENT PROJECTS Operational efficiency Research and development is pivotal to our strategic transformation and long-term sustainability – it and cost reduction ensures that we remain at the forefront of energy technology. Our research agenda is closely aligned Low fuel ignitors with the needs of the core business, prioritising practical solutions that strengthen operations, while Reducing fuel oil use, costs and startup emissions also exploring emerging technologies to maintain competitiveness and sustainability. Our research investment approach follows a 60:30:10 model across short-, medium-, and long-term horizons. In the short term, the focus is on sustained Environmental performance Net zero transition operations and efficiency improvements across generation, transmission, and distribution. Over and circular economy the medium term, the focus is on the transition to CCUS, biomass co-firing, clean coal technologies and a lower-carbon energy Ash utilisation, ash beneficiation, HELE mix. In the long term, our aim is to become a air quality monitoring Supports emissions leading clean coal and clean energy utility, fostering innovation, sustainability and competitiveness within a Turns waste and data into reduction and future carbon transformed electricity sector. Research and environmental value management development Our high-priority initiatives are outlined below. innovation GRID-FORMING INVERTERS portfolio Research was concluded on the role of grid-forming inverters to enhanced grid stability in utility-scale Balancing immediate renewable integration. Recommendations based on operational improvement the Finnish specification will be proposed to update with future focused the national grid code. sustainability innovation DYNAMIC VOLT-AMP REACTIVE (D-VAR) DEVICES Resilience and biodiversity D-VAR technology is being piloted to manage Grid modernisation voltage fluctuations caused by variable solar and protection and energy transition wind generation on medium-voltage networks. This Animal interactions research will improve power quality and voltage regulation in BESS and LDES renewable energy-rich areas. Reduces biodiversity impacts and Enables storage, flexibility and improves reliability renewable integration Targeted research and development investment supports Eskom’s transition from research concepts to scalable sustainability solutions. Curve size indicates relative investment value. 30 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Strengthening our infrastructure continued INFRASTRUCTURE PROTECTION USING DIGITAL SUBSTATION PROCESS BUS BENEFICIATED ASH TECHNOLOGY Ash-based concrete, which is fireproof and more NTCSA is focused on advancing the transition durable than traditional cement, is being piloted to to digital substations in line with its substation protect telecom infrastructure from vandalism and modernisation strategy. This includes enabling theft. This will enhance infrastructure resilience using interoperability between legacy and modern systems, sustainable materials sourced from our waste ash. supporting multi-vendor integration, enabling secure remote access and consolidating functions into fewer LONG-DURATION ENERGY STORAGE intelligent electronic devices. Research on the applicability of long-duration energy storage systems to provide dispatchable grid-scale A key enabler of the digital substation is the electricity, storage for variable renewable energy, process bus, which is essential for replacing copper as well as grid inertia to support grid stabilisation. wiring with real-time digital communication, The three initiatives are: the Komati carbon dioxide but presents significant challenges for network energy storage system, the Komati pumped thermal design, due to high data volumes and stringent energy storage system and the Hendrina gravity availability requirements. The objective of this energy storage system. research project is to evaluate the process bus implementation at a laboratory scale to generate LOW-FUEL IGNITORS practical insights that will guide the development of Ignitor systems which are designed to use less fuel NTCSA’s digital substation design standards. oil during start-up and low-load operations are being demonstrated at Duvha and Kriel power stations. The laboratory setup, with a process bus utilising Designs for both stations have been completed, the parallel redundancy protocol and a process and manufacturing for Duvha has commenced. bus utilising high-availability seamless redundancy, Construction and tie-in are scheduled for March 2027 was completed, along with the configuration of the at Duvha and May 2027 at Kriel. protection equipment. Configuration of the network switches and laboratory testing is expected to be REAL-TIME MONITORING OF completed during FY2027. Once operational, the system will support data CARBON CAPTURE UTILISATION AND GEOMAGNETICALLY INDUCED CURRENTS gathering to address key research questions including STORAGE (CCUS) TECHNOLOGY A geomagnetic disturbance disaster refers to a HYDROGEN FUEL CELL TECHNOLOGY fuel cell efficiency, turn-down ratio, levelised cost of The CCUS project focuses on CO2 capture, utilisation situation where solar storms cause the electricity This project forms part of Eskom’s strategic shift electricity and broader system integration potential. and geological storage. Our CCUS research is at an network to move out of its steady state condition, towards decentralised, low-emission energy solutions. advanced stage, with Kusile Power Station earmarked which can cause loss of critical plant equipment and/ Fuel cells convert hydrogen into electricity through an HIGH-EFFICIENCY LOW-EMISSION (HELE) for a demonstration plant. Key milestones completed or control of the plant, ultimately leading to voltage electrochemical process, offering various advantages TECHNOLOGIES include the review of CO2 technologies, and the function instability on the national grid. To improved disaster and zero on-site emissions. By leveraging hydrogen We are assessing the feasibility of repowering specification for the Kusile CO2 post-combustion contingency planning, a real-time monitoring system fuel cell systems, we aim to pilot a cleaner alternative coal plants with HELE technologies and piloting capture plant. Project delivery will consider the logistical is being developed to help correlate the intensity for off-grid and microgrid applications, particularly for the demonstration at power stations to improve requirements of Kusile’s inland location, including of solar storms with their impact on large power remote sites and critical infrastructure. plant efficiency and reduce emissions. The first transport, infrastructure and industrial demand. CCUS transformers. We are testing the real-time monitoring phase of the research project concluded with the technology research aims to demonstrate the technical of the impact of geomagnetically induced currents A contract was concluded in May 2025 for the recommendation to explore the use of circulating viability at coal-fired stations, as well as alignment with on large power transformers tests at four sites on installation and commissioning of the hydrogen fluidised bed combustion (CFBC) technology for clean coal, Just Energy Transition (JET) and CO2 circular Eskom’s network. offloading panel, piping system and fuel cell integration. repowering of ageing coal-fired power stations. economy objectives. The final offloading and fuel cell system design Demonstration of CFBC technologies for repowering incorporates safety elements, ensuring full compliance at Duvha, Hendrina and Grootvlei power stations We continue to collaborate with academic with Eskom’s hydrogen systems standard and South were approved in February 2026, and the project institutions, industry partners and international African National Standards. The research report was is currently in the commercial phase for the agencies to accelerate the development and completed and approved, and the project will now appointment of a technology owner to undertake the deployment of technologies that support JET, transition into the handover and close out phase. engineering development. operational improvement, environmental compliance and digital transformation goals. 31 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Interacting with the environment As an electricity utility dependent on resource-intensive processes, our operations both influence and are We are also dedicated to embedding the environmental aspect of our environmental, social and governance influenced by the environment. The electricity generation value chain relies primarily on non-renewable resources (ESG) plan into our operations as indicated below. – coal, water, diesel and nuclear fuel – which contribute to emissions, biodiversity and land impacts, as well as ash and other waste streams requiring responsible management. Our Koeberg nuclear power station uses Climate change mitigation and adaptation sea water for cooling, and nuclear is considered a low-carbon technology. We remain committed to reducing • Develop and implement mitigation plans Biodiversity, land use and our environmental footprint through focused interventions in air quality, air quality offsets, water use, waste to address climate change and polution impact on wildlife management, and biodiversity offsets. prevention • Drive repowering and repurposing 1 • Implement land and biodiversity plans to On 5 June 2026, World Environment Day, we launched Eskom’s environmental campaign, “Save today, initiatives to reduce environmental manage land use and sustain tomorrow”, a strategic, leadership-driven initiative aimed at embedding environmental stewardship and social impact wildlife impact into daily operations and decision-making across the business. 2 5 E Water use, reduction, security of supply and pollution • Implement water We achieved a significant reduction in CO2 emissions, Our ongoing commitment to compliance with Air pollution, health and management plan to ensure air quality management around 16% compared to 2019 levels, contributing to atmospheric emission licences, water use regulations, sustainable water use a declining share of national greenhouse gas emissions, and other operational requirements, together with • Execute the environmental now approximately 41%. Our particulate emissions performance worsened compared to last year, due our ash beneficiation initiatives, underscores our Zero Harm value and dedication to environmental Waste reduction and beneficiation • Execute waste management plan 3 4 management plan and clean coal technologies to poor ash handling and electrostatic precipitator stewardship. (including ash beneficiation) to minimise to reduce emissions and performance at five stations, Kendal, Lethabo, waste and promote beneficiation manage air pollution Matimba, Matla and Kriel. As focused maintenance of Climate change remains a central concern. the generation plant took effect, particulate emission In alignment with the Climate Change Act, 2024 which performance improved in the latter half of the year. came into effect in March 2025, we implemented There was a significant improvement in the specific divisional and subsidiary climate adaptation plans SR Refer to our sustainability report for more information on our ESG approach water consumption compared to last year, due to and strengthened our risk management systems limited use of the older, wet-cooled stations in favour and reporting on greenhouse gas (GHG) emissions. Our GHG emissions for FY2026 were limited to SECURING OUR RESOURCE REQUIREMENTS of our dry-cooled stations, Medupi, Kusile, Matimba Eskom’s electricity generation relies on a diverse mix of primary energy sources: coal, fuel oil, diesel, nuclear fuel and Kendal. In addition, the return to service of 184.5MtCO2e, well below the baseline of 214MtCO2e expressed in our second Pollution Prevention Plan. and water, together with sun and wind for renewable plant. In FY2026, securing these resources remained critical Medupi Unit 4 and the commercial operation of Kusile to ensuring system reliability, affordability and environmental compliance. Our primary energy sourcing approach Unit 6 has added additional dry-cooled units to the These efforts support our Just Energy Transition and our long-term goal of achieving net-zero emissions focused on timely procurement, quality assurance and cost optimisation, while also aligning with our broader mix, while the return to service of Koeberg Unit 1 strategic objectives of operational recovery, decarbonisation and long-term sustainability. also made a positive fresh-water-efficient contribution by 2050. We are actively reducing our environmental to the energy sent out. footprint while supporting global and national climate BALANCING THE QUALITY AND COST OF OUR COAL SUPPLY commitments. TECHNICAL PERFORMANCE Target Target Target Target Actual Actual Actual Measure and unit 2029 2027 2026 met? 2026 2025 2024 Coal burnt, Mt1 93.76 98.16 99.10 96.54 106.18 99.48 Coal purchased, Mt 92.05 97.82 107.18 103.79 107.29 107.45 Coal purchase R/ton, % increase n/a 13.1 14.0 10.1 2.9 6.6 Coal stock days 94 101 107 94 79 80 Normalised coal stock days, budgeted 32 32 32 53 40 45 standard daily burn2 1. From 1 April 2022, pre-commissioning burn is no longer capitalised to the asset and instead recognised in primary energy cost. However, pre-commissioning burn is still excluded from the figures reported above. The FY2026 figure excludes 1 085kt coal burnt during the commissioning at Kusile (2025: 416kt). 2. Normalised coal stock days exclude the coal stockpile at Medupi, purchased in terms of the take-or-pay contract from the tied colliery at the time of construction delays when Medupi was being constructed. 32 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Interacting with the environment continued SECURING STABILITY WHILE MANAGING To manage supply risk and stabilise stock levels, TRANSITION RISK we increased procurement from cost-plus contracts, In May 2026, Exxaro Resources officially opened its New Mine 1 operation at its Matla Coal Mine in Coal continues to be the primary fuel in our maintaining a disciplined approach to cost. Mpumalanga. In 2016, the decision was taken to stop production at the old Mine 1 due to deteriorating generation portfolio, representing about 85% of Although the average cost per ton of coal rose by safety pillars near the shaft infrastructure. This led to the development of the New Mine 1 project to installed capacity and contributing over 90% of 10.1% year‑on-year (2025: 2.9%), the increase in safely access the remaining reserves. energy dispatched in FY2026. With coal procurement the average coal purchase price was within Eskom’s accounting for roughly 85% of primary energy costs, target for the year. This was achieved by improved The New Mine 1 forms part of the broader Matla life-of-mine project, a long-term, R5.2 billion mega it remains critical for both operational stability and production from cost-plus mines which lowers the investment project designed to provide safe and continued access to the remaining coal reserves, improve financial sustainability to secure a dependable and cost coal unit cost, as well as by procuring short- and efficiency and ensure consistent delivery in line with the recently extended CSA with Eskom. The newly efficient supply of acceptable quality coal. medium-term coal at more favourable rates. concluded agreement commenced is valid until 30 November 2043. Our coal supply strategy remains focused on securing At 31 March 2026, no power station had coal stock “The reliable supply from Matla ensures that, as the grid is decongested to enable rapid renewables long-term, cost-effective contracts delivered by below its individual minimum stockholding level penetration, Eskom maintains operational consistency and security of energy supply needed to support conveyor and rail systems, tailored to the specific coal (March 2025: two stations), and normalised coal stock South Africa’s developmental and industrial needs.“ – Dan Marokane, Group Chief Executive quality requirements of each station. This approach of 53 days also improved (March 2025: 40 days), supports the Generation Reliability and Sustainability with no risks foreseen at these levels. As a cost-plus operation, Eskom is contractually responsible for funding the mine’s costs to ensure the Plan, enabling a sustained improvement in energy lowest possible overall fuel cost. The New Mine 1, which is critical to the reliable operation of Matla availability and reducing reliance on emergency To meet the medium- and long-term coal needs Power station, will contribute approximately 4.2 million tonnes of coal annually. This extension also generation. of our power stations under the coal strategy, we promotes job security in South Africa, as the Matla Coal Mine provides employment to 6 174 employees are renewing or extending cost-plus coal supply and contractors. The volumes and value of coal purchased over the agreements (CSAs) to align with the lifespan of past year were made up as follows: stations, avoiding surplus coal stock and financial penalties. Requests for proposal (RFPs) have All supply contracts are actively managed to align with stations’ useful lives, supporting both operational continuity Coal volumes been issued for fixed-price coal supply contracts and our broader transition objectives by ensuring coal supply remains stable while the energy mix evolves. for various power stations. Further RFPs will be issued to the market based on coal requirements. Our top 10 coal suppliers are set out below. Key agreements include: 35% Supplier Contract type 41% • The new CSA for Matla has been signed commencing on 1 April 2026 and is valid until 2043 Mix of cost-plus and Exxaro Coal • Negotiations are underway to conclude a CSA fixed-price contracts with the New Largo main mine to supply Kusile. Mix of cost-plus and Seriti Coal fixed-price In addition, several CSAs have been concluded, Universal Coal Fixed-price and more are in negotiations 24% Salungano Fixed-price • For the supply of limestone to Kusile from Glencore Fixed-price Cost-plus Fixed-price mid‑FY2027 onwards, due diligences and HCI Coal Fixed-price Value Short-/medium-term of coal purchased contracts negotiations are being finalised with the Mbuyelo Fixed-price shortlisted tenderers Into Africa Mining and • CSAs have been concluded for Camden, Duvha, Fixed-price Exploration Grootvlei, Kriel, Matla and Tutuka Mwelase Mining Fixed-price 35% 41% • Due diligences and negotiations are in progress Namane Resources Fixed-price with the tenderers for the Majuba RFP 24% Cost-plus Fixed-price Short-/medium-term contracts 33 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Interacting with the environment continued Managing coal quality to enhance reliability and The development of the Mokolo Crocodile Water Over the next decade, total water demand is The procurement process for new nuclear fuel reduce emissions Augmentation Project (MCWAP) Phase 2A is expected to decline as older wet-cooled coal‑fired contracts is underway. The independent assurance Coal quality remained a key operational focus in now expected to deliver water by January 2030, stations are repurposed or repowered and has been completed and the procurement FY2026. The coal-related other capacity loss factor with construction having commenced in renewable and nuclear capacity expands. However, governance processes are underway to secure a (OCLF) for the year was 0.26% (2025: 0.37%). October 2025. This is critical to supporting the flue the operation of FGD systems at Kusile and Medupi mandate to enter negotiations. The target is to finalise Matla Power Station remains the main contributor, gas desulphurisation (FGD) retrofit at Medupi and will increase water consumption, requiring a careful new fuel contracts by the end of FY2027. accounting for 81% of coal-related OCLF, while ensuring long-term water supply to Matimba and balance between environmental compliance and Duvha, Hendrina, Grootvlei and Kendal contributed Exxaro’s Grootegeluk mine (which supplies coal to resource efficiency. As a contingency to mitigate potential fuel risks for the balance. Matla continues to experience Medupi). The Mokolo River System, which supplies the February 2027 outage, Eskom has submitted fluctuations in the quality of coal supplied, which Matimba and Medupi, remained at full capacity at a request to modify the existing fuel contracts to PR For a discussion of our water usage, refer to include an additional reload. This measure will only be results in variability in OCLF performance. Eskom year end, but the risk of curtailment remains until “Managing water consumption” on page 37 later in remains committed to various initiatives to improve MCWAP Phase 2A becomes operational. exercised if required, ensuring continuous supply for this section Matla’s coal quality, including mixing coal from the both of Koeberg’s units. New Mine 1 colliery with other higher-quality PR For more information on the Medupi FGD retrofit sources. ENSURING KOEBERG’S CONTINUITY AFS F or further information on nuclear fuel balances, project, refer to the “Compliance with Minimum Emission Standards” on page 36 later in this section, THROUGH NUCLEAR FUEL SECURITY refer to note 10 on future fuel supplies and note 13 Coal quality monitoring and sampling processes Eskom maintained the security of nuclear fuel supply on inventories in the financial statements and to “Strengthening our infrastructure – Delivering ensure that coal supplied meets quality requirements. capacity expansion” on page 27 in this report for the Koeberg Nuclear Power Station throughout The comprehensive approach further includes FY2026. Long-term contracts for enriched uranium improved mine planning and scheduling; investment remain in place until 2028, ensuring continuity and in new equipment to capitalise mining sections and Our water security strategy continues to face flexibility in the nuclear fuel supply chain. Existing improve accessibility; as well as longer-term initiatives challenges from DWS infrastructure constraints, contracts with Westinghouse and Framatome for the construction of new coal beneficiation plants. including maintenance delays, prolonged outages and ensured the uninterrupted delivery of fabricated increasingly complex inter-basin transfers. While dam nuclear fuel, with the fuel reload for the scheduled SUSTAINING GENERATION OPERATIONS levels remained healthy across key systems, climate February 2027 outage already secured. THROUGH WATER SECURITY variability, localised curtailments and declining water Water remains a critical resource for Eskom’s quality required proactive planning and ongoing coal‑fired generation fleet, particularly in cooling and collaboration with DWS and other stakeholders. demineralisation processes. In FY2026, we continued to prioritise water security through long term supply Water quality deterioration in the Usutu-Vaal River agreements, infrastructure resilience and proactive System remains a significant concern, necessitating engagement with the Department of Water and upgrades to water and wastewater treatment Sanitation (DWS). Our water strategy supports the infrastructure at several stations to accommodate broader transition to a lower-carbon energy mix, poorer-quality water. We continue to engage with while safeguarding uninterrupted operations at our DWS to mitigate these risks and align with river wet-cooled stations. resource quality objectives and national water reallocation strategies. At 31 March 2026, the Integrated Vaal River System storage level was 100.6% at the end of the summer To address the growing risk of bulk water rainfall season. Projections indicate no anticipated supply interruptions, particularly in Gauteng, water curtailments for Eskom’s power stations over we implemented water conservation and demand the next four years, due to high dam levels and management initiatives across our operations and Eskom being designated as a strategic water user. activated business continuity plans to minimise Nevertheless, the Vaal River System will continue potential disruptions. to be vulnerable to future water supply deficits until the commissioning of the Lesotho Highlands Water Project Phase 2 in 2029. 34 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Interacting with the environment continued REDUCING OUR ENVIRONMENTAL FOOTPRINT LIMITING PARTICULATE AND GASEOUS The decline in performance for both measures was We employ several KPIs to measure the effectiveness of our interventions. These include relative particulate EMISSIONS primarily due to the ash handling issues at Kendal, emissions, specific water consumption and the number of reported environmental legal contravention incidents. The generation of electricity through burning coal Kriel, Lethabo, Matimba and Matla. While progress releases greenhouse gases, particularly carbon has been made on the recovery of the ash handling The environmental interaction of our operations is strategically managed through the implementation of dioxide (CO2), which contributes to climate change. cycle at all these stations during the year, challenges governance oversight plans. These include comprehensive water management strategies, emission reduction Coal-fired power stations also emit other major remained at year end at Kriel, Lethabo and Matimba. initiatives and air quality improvement plans at our generation facilities. Additionally, we are engaged in bird contributors to air pollution: these are particulate At Kriel, challenges included the dust-handling plant, mortality mitigation projects on our operations. matter (PM) and gaseous emissions such as nitrogen overland conveyor breakdowns, and underperforming oxides (NO2) and sulphur dioxide (SO2). electrostatic precipitators (ESPs) and SO3 plant.  efer to page 79 in the supplementary information of this report for further detail on the environmental PR R Repairs to one conveyor line have been completed, implications of using or saving electricity The National Environmental Management: Air Quality which is improving performance. Lethabo Unit 4 has Act, 2004 (NEMAQA) requires the installation of been experiencing recurring periods of extremely technology to reduce emissions. Since the early poor performance and was shut down on 2 April Target Target Target Target Actual Actual Actual 1980s, we have implemented pollution reduction 2026 for the refurbishment of its ESP; it is due to Measure and unit 2029 2027 2026 met? 2026 2025 2024 technology to reduce particulate matter and NOx return from the planned outage by September 2026. Particulate emissions, kt1 n/a n/a n/a n/a 176.32 122.94 145.30 emissions. Kusile Power Station is our first power Matimba’s performance was mainly affected by ash Relative particulate emissions, kg/MWh station to have FGD installed to reduce SO2 handling challenges, SO3 plant defects and poor ESP 0.30 0.35 0.35 0.98 0.64 0.79 emissions, while Medupi Power Station is still to sent out SC, 2, 3 performance. Work to improve ash handling systems Carbon dioxide (CO2), Mt1, 4 n/a n/a n/a n/a 184.0 204.6 190.4 retrofit FGD. at Matimba is ongoing. Nitrous oxide (N2O), t1, 4 n/a n/a n/a n/a 1 291 1 470 1 382 Methane (CH4), t1, 4 n/a n/a n/a n/a 1 394 1 567 1 523 Eight of our 14 coal-fired stations – Grootvlei, PR More information on particulate and gaseous Carbon dioxide equivalent (CO2e), Mt1, 4 n/a n/a n/a n/a 184.5 205.1 190.9 Kusile, Arnot, Hendrina, Medupi, Camden, Duvha emissions is available in the technical statistical table Sulphur dioxide (SO2), kt1, 4 n/a n/a n/a n/a 1 420 1 591 1 431 on page 72 in the supplementary information of this and Majuba – met their internal relative particulate Nitrogen oxide (NO x as NO2), kt1, 5 n/a n/a n/a n/a 695 772 735 report emission targets for FY2026. Specific water consumption, ℓ/kWh sent 1.33 1.36 1.37 1.34 1.40 1.43 COMPLIANCE WITH ATMOSPHERIC EMISSION out SC, 2 Net raw water consumption, Mℓ1 n/a n/a n/a n/a 241 562 268 638 260 680 RELATIVE PARTICULATE EMISSIONS LICENCES Environmental legal contraventions, Relative particulate emission performance of We are permitted to emit atmospheric pollutants – – – n/a 67 65 68 0.98kg/MWh sent out has deteriorated since the within certain limits, based on atmospheric emission number1 Environmental legal contraventions previous year (2025: 0.64kg/MWh sent out). licences (AELs) issued by the authorities to individual reported as a result of significant failure – – – 3 – 7 power stations. of business systems, number 6 It is estimated that coal-fired units have operated in non-compliance with their allowable daily limits Coal-fired stations continue to operate in general 1. No target is set for emission volumes, net raw water consumption or environmental legal contraventions. for particulate matter emissions on 1 826 operating compliance with emission limits in their AELs, 2. Relative particulate emissions values and specific water consumption exclude Kusile Unit 6, which achieved commercial operation on days (combined for all units) during the year (2025: although non-compliance with these limits occurs 29 September 2025. New units are only included one year after achieving commercial operation. 1 508 days). periodically and are reported to the authorities as 3. At stations with unusually high emission levels, the monitors often exceed their maximum limits. In these instances, methodologies for emission estimations are used. required. Our AELs require us to report emergency 4. Emission figures are calculated based on coal characteristics and power station design parameters using coal analysis and coal burnt incidents to the authorities, referred to as NEMAQA tonnages. Figures include coal-fired and gas turbine power stations, as well as oil consumed during power station start-ups. section 30 incidents. 5. NO x reported as NO2 is calculated using average station-specific emission factors (which are measured intermittently) and tonnages of coal burnt. 6. These relate to specific cases of environmental legal contravention incidents that are of high significance in terms of the impact on the PR Incidents reported to the Department of Forestry, environment and/or on Eskom in that they have a material business impact and illustrate a significant failure of business systems. Fisheries and the Environment (DFFE) in terms of section 30 of NEMAQA are disclosed under SR F or further information on air quality and emission, refer to “Air quality and emissions performance” in the “Reducing environmental legal contraventions” sustainability report later in this section on page 37 35 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Interacting with the environment continued By year end, eight units were operating in non- Medupi FGD retrofit compliance with average monthly emission limits The installation of wet FGD technology will enable (2025: 19), placing 4 616MW at risk of censure or Eskom to reduce SO2 emissions in line with South closure by the authorities (2025: 12 735MW). The Africa’s AEL requirements and international best main contributors were Kendal, Kriel, Lethabo, practice. Kusile Power Station was commissioned Matimba and Matla. Causes for operating in non- with wet FGD technology already installed. The AEL compliance included underperformance of the permits Medupi to retrofit FGD technology within electrostatic precipitators and flue gas conditioning six years of each unit’s commissioning. We have, with (SO3) plant, malfunctions of the dust handling plant, World Bank funding, committed to the retrofits, as well as excessive emission exceedances during unit aligning the timing with scheduled general overhaul start-ups. outages. NOx emission limits The Board’s Investment and Finance Committee has There were 657 reportable exceedances of NOx approved wet FGD as the main technology, with limits by coal-fired power stations during the year, a alternatives also allowed. The FGD retrofit project significant increase compared to the six exceedances is a longer-term priority and a critical component of in FY2025. The increase was primarily driven by our environmental compliance strategy and is a key exceedances at Majuba following the introduction condition of the World Bank’s funding agreement for in April 2025 of a stricter NOx minimum emission Medupi Power Station. Our project team maintains COMPLIANCE WITH MINIMUM EMISSION The exemption does impose additional obligations, standard limit, with the station being unable to meet regular communication with the World Bank STANDARDS including ambient air quality monitoring and its exemption limit. Majuba is planning NOx boiler regarding the project progress and status, thereby The MES require reductions in SO2, NOx and community health support. We have made progress upgrades by 2030, and the authorities have been ensuring transparency. particulate emissions to protect health and the on these requirements and submit regular updates approached to relax the limit until the upgrades have In compliance with the station’s Minimum Emission environment while allowing sustainable economic and to DFFE. Eskom has developed health awareness been completed. Standards (MES) exemption, Eskom has prepared an social development. After exemption applications programmes and planned health surveys around SO2 emission limits updated cost benefit analysis, which was submitted and appeals, the Minister of Forestry, Fisheries and affected stations; meetings with the Department of There were 11 reportable exceedances of daily to DFFE in April 2026 for consideration. DFFE has the Environment issued a broadly favourable decision Health to facilitate collaboration are underway. SO2 limits by coal-fired power stations during the requested further modelling to support their review, in May 2024 that permits continued operation of Eskom’s coal-fired stations under defined conditions. Legal challenges and timing year (2025: none). Most of the exceedances were with the updated report targeted for completion Eskom filed a court application in September 2025 recorded at Arnot and Majuba. Those at Arnot were by February 2027. The study highlights the high Stations scheduled for decommissioning by 2030 to review the March 2025 MES exemption decision. primarily due to poor coal quality. financial cost of FGD compared to relatively limited For Arnot, Camden, Grootvlei, Hendrina, Komati The review is based on multiple issues, including health benefits – as reported previously, the revised Increased focus is being placed on resolving NOx and Kriel (affecting around 10 000MW of installed the limited period covered by the exemption (only cost estimate is R41.7 billion, reflecting inflationary and SO2 exceedances due to the stricter AEL limit capacity), DFFE granted a suspension of MES limits, five years to March 2030 for six of the stations); the pressures and market dynamics. Any changes in the implemented at the beginning of the financial year. allowing operation at emission levels achievable with approach taken for Medupi FGD; the strict monthly approach to FGD will be discussed with all relevant Efforts to amend the limit to a more attainable level existing controls. As requested, Eskom submitted particulate limits for Tutuka; and the broad nature stakeholders. before the completion of the NOx burner upgrades decommissioning and/or repowering and repurposing of the conditions, including the health requirements. are ongoing. plans for these stations to DFFE in May 2025 and The court process is still at the stage of confirming PR For more information on Medupi FGD, refer to is preparing additional information subsequently the official record of the decision from the Minister. To address the performance challenges, Generation “Strengthening our infrastructure – Delivering requested. Progress on this matter is expected only in the latter continues to reinforce a culture of environmental capacity expansion” on page 27 in this report half of FY2027. compliance. Targeted emission recovery initiatives Stations operating beyond 2030 are being implemented at underperforming units, DFFE issued a generally favourable MES exemption where units are either operated at partial load or decision on 31 March 2025, in which Lethabo, Tutuka, temporarily taken offline for maintenance to improve Kendal, Majuba, Medupi and Matimba were exempted operational efficiency. until 31 March 2030, while Duvha and Matla were exempted until 2034. The decision did not require any additional SOx or NOx projects beyond Eskom’s existing commitments. 36 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Interacting with the environment continued MANAGING WATER CONSUMPTION REDUCING ENVIRONMENTAL LEGAL Electricity generation requires significant volumes Dry-cooled stations like Medupi, Kusile, Number of environmental legal contraventions CONTRAVENTIONS of water. As a designated strategic water user with Matimba and Kendal use air-cooled 3 A total of 67 environmental legal contravention assured supply throughout the lifespan of our power condensers instead of water-intensive wet incidents were recorded during the year (2025: 65), stations, we recognise our responsibility to use cooling systems. This approach significantly 20 including 61 incidents at coal-fired power stations, this resource efficiently in a water-scarce country reduces water consumption. three at NTCSA and three at Eskom Rotek Industries like South Africa. Over the next five years, the SOC Ltd (ERI). Notably, the Distribution and Group Generation Division is committed to reducing its 2026 Capital divisions did not record any environmental water consumption by 43%. SPECIFIC WATER CONSUMPTION legal contraventions during the year. Specific water consumption was 1.34ℓ/kWh sent out Projected annual water use over the medium term 44 Eskom has classified three legal contravention against a target of 1.37ℓ/kWh sent out. This strong incidents as resulting from a significant failure of performance reflects reduced water usage driven by a -43% Water 1 1 Air quality business systems during the year (2025: none). favourable energy mix, with 52% of energy generated Environmental authorisation 271 Water projection (Nm3/pa) by the dry-cooled, nuclear and peaking portfolios and • Arnot Power Station exceeded its SO2 daily 254 average limit of 2 500mg/Nm3 on numerous 247 48% by the wet-cooled portfolios. 232 occasions in June and July 2025, thus contravening 208 Operational sites maintained a strong focus on its AEL licence; it was issued with a compliance 30 2025 33 notice by the Nkangala District Municipality. water management through proactive leak repairs 154 during maintenance and outages, dredging silt from The station has since responded to the authorities dams, preventing ash and oil entering the dams, and the censure has been closed and ensuring pump availability to recover and reuse • At Hendrina Power Station, an ash spillage wastewater. These measures enhance overall water occurred onto a Transnet servitude resulting in a Water Air quality Waste efficiency and support compliance with the National compliance notice being issued by the Nkangala Environmental authorisation Water Act, 1998 (NWA) across all sites. District Municipality in February 2026. Two open actions relate to submission of the impact report 2025 2026 2027 2028 2029 2030 and implementation of remedial action. The impact assessment report will be submitted to the municipality for approval once finalised Several interventions are being implemented to • At Kendal Power Station, a public complaint was improve water consumption, including: laid in May 2025 regarding excessive dust emissions • Water recycling and reuse: By maximising recycling from the stack due to faulty dust-handling plant, and reuse of water within the plant. This includes affecting the community of Phola. In October reusing treated effluent from the sewerage plant 2025, Kendal was formally issued with a directive in for cooling and other operational processes terms of section 28 of the National Environmental • Optimising cooling tower operations: Enhancing Management Act, 1998. The independent specialist cooling tower efficiency through improved report was submitted to Nkangala District maintenance and operational practices to minimise Municipality in June 2026 as required One open water losses from evaporation and drift action relating to accelerating the procurement of • Leak detection and repair: Conducting regular spares is in progress inspections to identify and promptly repair leaks, A total of nine NEMAQA section 30 incidents has reducing unnecessary water wastage been reported to DFFE (2025: 17), seven of which Kendal and Tutuka remain priority sites for reducing were recorded in Generation, one in Distribution and water consumption, as both stations are currently one in ERI. A total of 19 NWA section 20 incidents experiencing elevated water usage levels and ongoing were reported to DWS (2025: 41), 17 of which were dam overflows. recorded in Generation, one in ERI and one in Group Capital. The NWA section 20 incident previously reported for NTCSA was rejected by the authorities, with NTCSA now reflecting no incidents. 37 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Interacting with the environment continued During the year, the Arnot, Kendal, Matimba, ENHANCING WASTE MANAGEMENT PROVISIONS FOR ENVIRONMENTAL Medupi and Tutuka power stations experienced PR Detail on the disposal of ash, asbestos as well as We are committed to protecting the health of RESTORATION AND REHABILITATION used nuclear fuel and nuclear waste is set out in the extended periods of polluted water discharge into citizens and the environment by reducing pollution We have made provision for our environmental technical statistics on page 70 in the supplementary the environment, in contravention of the NWA and and ecological degradation through effective waste obligations related to the decommissioning of: information of this report the conditions of their water use licences. The dam management. A fundamental principle in this regard • Nuclear plant, including the rehabilitation of the overflows at Arnot and Tutuka power stations were is to manage waste as close to the source as possible, associated land and the management of spent successfully stopped in September 2025 and January PROMOTING RESPONSIBLE while investigating and implementing ways to reduce, nuclear fuel assemblies and radioactive waste 2026 respectively. Plans to stop the overflows at ENVIRONMENTAL STEWARDSHIP reuse, recycle and recover waste in line with DFFE’s • Other generating plant, including the rehabilitation Kendal, Matimba and Medupi have been identified: SUPPORTING BIODIVERSITY waste hierarchy. of the associated land • Medupi stopped the overflow in July 2026 and has Our operations impact and are affected by We achieve this by integrating circular economy • Cost-plus mines and historic defunct coal mines, identified mitigation measures to maintain dam levels biodiversity. We perform environmental impact principles into our operations. Circularity is realised where we are contractually or financially obligated to within acceptable limits during the rainy season assessments, habitat restoration and conservation through various initiatives, including: reimburse coal suppliers. This covers the estimated • At Matimba, the installation of pumps at the initiatives to scientifically assess biodiversity risks and • Recycling various waste streams rehabilitation, care and maintenance, and closure Metsimaholo pollution control dam is progressing; protect vulnerable species. costs, as well as including the rehabilitation of the this will optimise dust suppression and ash dump • Selling ash and gypsum from coal-fired power Red data bird mortalities recorded during the year associated land together with pollution control irrigation. In addition, Matimba is also targeting a stations for reuse reduced slightly to 182 (2025: 210), although the • Beneficiation initiatives such as ash-based road waste-water recovery project, which is in its early We have raised the following provisions relating to actual figure may be higher. construction stages environmental rehabilitation and restoration: • At Kendal, the overflow is expected to stop by • Mine backfilling using ash SR For more information on our partnerships and efforts Actual Actual Actual the end of November 2026. The station continues • Replacing wooden poles with geopolymer poles to mitigate the risk of our operations to vulnerable R millions 2026 2025 2024 to dredge the dirty-water dam when required, to made from ash improve its ability to manage dam water levels birdlife, refer to “Biodiversity and natural capital” in Power station-related the sustainability report • Soil amelioration projects environmental DFFE has accepted the audit report submitted by Eskom 18 223 16 068 23 679 Several ash beneficiation projects are undertaken restoration – nuclear on the phasing out of polychlorinated biphenyls (PCBs). We have established integrated responsible land to drive waste reduction and minimise the volume plant This achievement assists South Africa in meeting its and biodiversity management practices to minimise of ash being disposed of in ash facilities to prevent Power station-related international obligations under the Stockholm Convention the impact of our activities on ecosystems and the accumulation of legacy ash and its associated environmental 17 635 16 086 20 656 on Persistent Organic Pollutants, specifically relating to the environmental risks. These efforts reflect our restoration – other to enhance ecosystem services. These mitigation elimination of PCBs. commitment to reducing landfill dependency and generating plant interventions are often undertaken in collaboration promoting resource efficiency and sustainability across Mine-related closure, Eskom’s Environmental Steering Committee, together with conservation organisations, local communities pollution control and 14 240 13 280 16 336 and other stakeholders. our operations. with the Generation Environmental Compliance rehabilitation Steering Committee, provides active oversight Eskom has declared three nature reserves, at Total 55 215 47 943 53 045 of our responses to compliance notices issued by Koeberg, Ingula and Majuba power stations, regulatory authorities. In parallel, the Board’s Social, focusing on conserving biodiversity and promoting Ethics and Sustainability Committee monitors environmental sustainability. These initiatives AFS Refer to notes 4.5 and 28 in the financial statements management’s progress in meeting environmental contribute to the protection of natural habitats and for more information compliance commitments. To uphold our duty of care species, supporting South Africa’s biodiversity heritage to the environment, we have adopted an integrated and the United Nations Sustainable Development approach that emphasises governance, performance Goals. We also manage land under conservation management, and continuous skills development. practices at Thyspunt, Bantamsklip, Grootvallei, Detailed operational plans have been implemented to Majuba and Sere. address risks and underlying causes of non-compliance incidents, particularly those related to particulate Through innovation, partnerships and sustainable emissions, water use, and the discharge of polluted land management, we seek to ensure that sustainable water from power stations. power does not come at the cost of biodiversity. We believe that energy and ecology can coexist through science-led approaches and responsible stewardship. 38 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Interacting with the environment continued INVESTING IN RENEWABLE ENERGY In aggregate, 11.7% of the power supplied during the Our renewable generating capacity currently consists On 9 June 2026, we launched Eskom Green, a dedicated renewable energy business designed to year was sourced from renewable energy sources in of one wind facility and six small hydroelectric accelerate the development of utility-scale renewable energy projects and support larger power user the form of solar, wind and hydro, with 82.1% being stations. Although we operate three pumped storage customers in achieving their decarbonisation and energy transition objectives. supplied by coal and diesel, and 5.7% by nuclear schemes with total installed capacity of 2 732MW, (2025: 11.3%, 84.2% and 3.9% respectively). The these stations are net consumers of electricity, The insights indicate that the development of renewable energy projects requires agile decision-making, balance of 0.5% was derived from other sources pumping water to upper storage dams during periods access to diverse sources of capital, partnership-based delivery models, and bankable project structures. (2025: 0.6%). of low consumption and releasing water through These differ materially from Eskom’s legacy vertically integrated generation model. the hydro-electric turbines to generate electricity at While our direct investment in renewable generating peak times. “Eskom Green is a utility-scale renewable energy business that rapidly accelerates the options available capacity has been modest to date, this is set to change to South Africa’s industries to decarbonise and transition industrial and productive capacity to maintain following the launch of Eskom Green in June 2026. During the year, our Sere Wind Farm contributed export competitiveness. The business is set to increase the supply of renewable energy to enable 284GWh to the national grid (2025: 332GWh). customers to lower the carbon footprint of their energy consumption.” – Rivoningo Mnisi, Group PR F or more information on Eskom Green, refer to It maintained an average load factor of 30.98% (2025: Executive: Renewables. “Strengthening our infrastructure – Delivering 36.33%), which aligns to expectations for wind-based capacity expansion” from page 27 in this report renewable plant, and recorded an average availability “Today’s announcement is not simply about carbon content compliance but delivering leading-edge factor of 93.64% (2025: 96.70%). solutions at scale to enable our customers to implement their decarbonisation strategies. This new entity  dditionally, refer to “Transitioning to cleaner SR A is built on decades of power generation skills and expertise which the nation has invested in, and Eskom energy” in the sustainability report We purchase renewable energy from independent Green reflects successful adaptation to new technologies within Eskom. We have been playing in this power producers (IPPs), mainly from wind and space for some time, and we are now putting a stake in the ground – this is a development that South solar projects, alongside smaller contributions from Africa can be proud of.” – Dan Marokane, Group Chief Executive. biomass, landfill gas and small hydro technologies. Renewable IPPs contributed 18 421GWh during the year (2025: 17 420GWh), constituting 8% of energy available for distribution for the year (excluding wheeling). Furthermore, most of our imported power is supplied by Hidroelèctrica de Cahora Bassa, a hydroelectric station in neighbouring Mozambique. PR F or information on the capacity of our power stations and a breakdown of capacity supplied by IPPs, refer to page 75 in the supplementary information in this report 39 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Sustaining communities The strength of our communities is inseparable from the strength of our business. As South Africa navigates a Electricity sales declined by 6.2% during the year, case-by-case approach to applications, enabling us demanding economic environment and a transforming electricity sector, our developmental mandate has never continuing a longer-term structural trend driven by to tailor pricing and contractual structures to the mattered more, particularly in expanding access to electricity, supporting inclusive growth and protecting the economic pressure in energy-intensive industries, specific commercial circumstances of each customer, public from the hazards associated with our operations. large customer curtailments, the growing impact of while ensuring transparency, fairness and regulatory behind-the-meter self-generation and, most recently, alignment for all customers. We deliver this mandate through our socio-economic transformation plan – a coordinated framework of several our largest cross-border smelter customer entering initiatives across five focus areas. Together they turn our capital investment, procurement spend and operations care and maintenance in March 2026. This trend Alongside this, we are pursuing structural demand into measurable outcomes for communities. represents one of the most material long-term risks growth through an emerging data centre and to our revenue sustainability and, by extension, to the flexible-load capacity customer pipeline. We are also Supplier developmental value which our revenue underpins. strengthening customer retention in a liberalising Human capital development, market through customer wheeling optimisation, Universal and skills Corporate social Just Energy localisation and In response, we have moved from passively managing renewable energy offerings by Eskom Green, energy access development responsibility Transition industrialisation sales erosion to actively growing and diversifying expanded electric vehicle charging and demand Expanding grid, Building a High-impact Supporting Growing local revenue. During the year, we introduced negotiated response initiatives. Together with our reintroduced off-grid and future-ready investments in workers and industry, pricing agreements (NPAs) for distressed industrial demand management programme, which delivered microgrid workforce for a education, communities as black-owned customers, approved by NERSA, to help retain material savings during the year by shifting solutions to modernising health, food we shift to a enterprises and critical demand. These agreements aim to preserve consumption off-peak, these initiatives are expected reach every energy sector security and lower-carbon industrial approximately 13TWh of at-risk demand per year, to stabilise sales over the next five years and position community enterprise future capacity along with the employment opportunities, tax base Eskom to grow in a more competitive environment. and export earnings these industries generate for Aligned to FY2027 – FY2031 South Africa. At 30 June 2026, we had 11 long-term PR F urther detail on the concessionary tariff NDP 2030 delivery framework NPAs active across the aluminium, ferrochrome and interventions to support two ferrochrome silicon-manganese sectors to sustain these customers customers and interventions to address the declining and the jobs and broader value chains that rely on sales trend are set out in “Enhancing financial The past year reflected steady, measured progress, Number of customers them, and ensure that South Africa derives greater sustainability – Sales and revenue” on page 54 of this from expanding access in remote communities and economic value, employment opportunities and report giving young suppliers their first meaningful contracts, +1.5% +1.4% -0.7% -4.7% industrial growth from its natural resources. Going to supporting workers and communities most forward, we will apply a proactive, time-bound, exposed to the energy transition. This section shows how these commitments came to life during the year, CUSTOMER SERVICE and where we are heading next. We measure customer satisfaction continuously through perception-based surveys, complemented by service 7 172 296 6 785 891 7 074 672 7 120 090 6 969 164 performance indicators for contact centre performance, call resolution and planned outage management. CUSTOMER CENTRICITY Customer centricity remains fundamental to Target Target Target Target Actual Actual Actual how we retain relevance, grow value and fulfil Measure and unit 2029 2027 2026 met? 2026 2025 2024 our developmental mandate in a rapidly evolving Key Customer Delight, % 86.0 85.0 80.0 90.5 86.8 88.1 electricity market. As customers increasingly generate Customer Delight, index SC n/a n/a 3.60 3.77 4.07 4.40 their own power, new competitors enter a liberalising industry and digital expectations rise, we are 2022 2023 2024 2025 2026 transforming our business model, refreshing how we Both our customer satisfaction indices comfortably exceeded target for the year. The Key Customer Delight serve our customers and improving the reliability and score for large industrial customers reached a recent high of 90.5%, with every service dimension above target quality of supply, while continuing to extend access to except reliability of supply, reflecting the unplanned outages and load curtailment felt by these customers during those in South Africa who are still without electricity. the year. Our large customers continue to value the personal service from their key account executives but have asked for faster outage feedback and shorter turnaround times on technical investigations. We are addressing FY2026 was shaped by three defining priorities: both through a review of our outage management process. arresting the structural decline in electricity sales, eradicating load reduction while improving quality of supply, and modernising customer service to keep pace with a changing market. 40 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Sustaining communities continued The broader Customer Delight index exceeded We remain focused on improving the customer experience, responding to the evolving needs of our customers target, supported by the growing traction of our and providing convenient access to customer care through digital, self-service and on-the-ground channels. In digital channels, including Alfred, our AI-enabled the year ahead, our focus turns to completing the rollout of an AI-enabled customer relationship management chatbot, the MyEskom Customer app and Hubs- system, further scaling digital service channels and expanding service points to deliver faster, more responsive on-Wheels, our mobile customer contact centres support across our customer base. Alongside service quality, cyber and data protection on our customer which are bringing service closer to communities. platforms will receive dedicated focus as digital adoption continues to grow. Enhancements to our Interactive Voice Response system have further improved responsiveness. We SR For further detail on our customer service programmes and community service initiatives, refer to “Bringing services remain mindful that these gains need to be sustained; directly to communities” in our sustainability report work items not completed within target times remain an area of focus, and we are prioritising root cause analysis and self-service capability to sustain the improvement. It should be noted that Deloitte has qualified the results of the Customer Delight index, having been unable to obtain sufficient and appropriate audit evidence for aspects which collectively contribute 2.04 to the overall index. This was due to insufficient audit evidence associated with customer surveys and the performance of customer care channels used in the calculation.  efer to the discussion in "Sustainability indicators IR R selected for reasonable assurance" on page 103 of the integrated report for further information on the circumstances surrounding the challenges leading to Deloitte’s qualification and management’s response The qualification relates to the verifiability and formalisation of specific data inputs and not to the underlying quality of our customer service or the strength of our commitment to customers. We are comfortable that we gathered sufficient evidence for the purposes of managing the underlying processes. Nevertheless, we have responded decisively to the audit finding. Management has already implemented targeted remedial actions, including enhanced survey design and respondent validation, formalisation of the calculation methodology and improved recordkeeping of customer interactions. 41 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Sustaining communities continued EVOLVING OUR BUSINESS MODEL Importantly, success depends as much on the strength Through our quarterly Public Safety Forum, we To compete effectively in a liberalising industry, ROOFTOP SOLAR SYSTEMS FOR of our community partnerships as on the technology worked alongside partners including Sasol, Transnet, we are transforming the group to be ready for ORANGE FARM SCHOOLS we deploy. Sustained progress relies on safe access PRASA, the Railway Safety Regulator and SANRAL the South African Wholesale Electricity Market In communities such as Orange Farm in for our teams, protection of infrastructure and the to turn cross-industry learning into practical safety (SAWEM). Central to this is our retail tariff plan, Gauteng, persistent electricity infrastructure support of the communities we serve, which is where improvements. In parallel, we advanced engagements which is unbundling tariffs into their underlying cost theft and vandalism have disrupted education our community engagement and enforcement against with the Department of Employment and Labour components and preparing the ground for dynamic for thousands of learners. Through the theft come together. and the City of Mbombela Local Municipality on pricing that will reward flexible consumption. Eskom Development Foundation NPC community encroachment within our distribution (the Foundation), we installed rooftop solar PR For further information on load reduction refer to servitudes, which poses direct safety risks to residents Preparations are also underway to participate in as well as technical risks to our network. systems at five local schools – Radipabi “Strengthening our infrastructure – Progress on SAWEM as a competitive retailer, supported by Primary, Aha-Thuto Secondary, Laus Deo efforts to eradicate load reduction” on page 26 of In the year ahead, we will turn our public safety refreshed customer segmentation, digital service Primary, Moyisela Primary and Mphethi this report platforms and product innovation. The external focus to sustaining the reduction in public fatalities, Mahlatsi Secondary – providing them with the extending community awareness campaigns into launch of this market was deferred from April 2026 resilience to continue teaching and learning higher-risk areas, deepening our infrastructure to the latter part of FY2027 to allow the market through supply disruptions and freeing up PUBLIC SAFETY crime response through smart metering and law code, tariff frameworks and cost-recovery rules funds for educational resources. Public safety is critical to our value of Zero Harm. enforcement partnerships, and continuing to to be finalised, giving us additional time to ready our systems, tariffs and customer offerings for a During the year, we sustained our nationwide public strengthen coal haulage safety. These installations are a tangible investment in safety campaigns, using every opportunity to help competitive market. We regard this as a disciplined the future of young South Africans, ensuring sequencing decision rather than a loss of momentum. communities understand the risks associated with Every fatality prevented, every act of infrastructure that infrastructure challenges do not become electricity and the responsibility we all share in crime disrupted, and every network protected is a barriers to opportunity. keeping people safe. Our messaging remained focused direct contribution to the communities we serve. Underpinning this is our broader network and metering modernisation programme. Through the on the dangers of illegal connections and overloaded advanced metering infrastructure (AMI) programme, circuits and the risks of purchasing prepaid electricity OUR CONTRIBUTION TO SUPPLIER Load reduction has historically affected communities from unauthorised vendors. We continued to call on we are progressively replacing conventional and DEVELOPMENT in high-loss, high-theft areas, undermining service the public to report low-hanging power lines, meter Our procurement spend is one of the greatest prepaid meters with smart meters that improve quality, revenue collection and customer trust. tampering and any signs of vandalism. levers we possess to create value beyond our own theft detection, provide real-time outage visibility Eradicating load reduction is therefore both a operations. Through preferential procurement, and enable dynamic pricing, as well as integration of customer commitment and a strategic priority, and Regrettably, we recorded 11 public recordable fatality supplier development, and enterprise development data concentrators, head-end systems and meter progress over the past year was tangible. At the incidents (PRFIs), comprising seven electrical contact and localisation, we translate our operational spend data management. Together with enhanced controls date of publication of the report, seven provinces incidents and four from other causes (2025: 15 PRFIs, into jobs, skills and broader participation in the on our online vending system and the key revision are load-reduction free and more than 1.2 million comprising 12 electrical contact and three from other sectors that support our activities, strengthening the number (KRN) rollover project, these interventions customers nationally (around 58% of our eradication causes). Every fatality is subject to a formal safety social and economic fabric on which our long-term protected revenue that would otherwise have been target) had been relieved of load reduction. The investigation, with findings used to strengthen controls. sustainability depends. eroded through theft and non-technical losses. remaining exposure is concentrated in Gauteng and While the reduction in incidents reflects sustained KwaZulu-Natal, where illegal connections, meter community engagement and infrastructure protection, We were independently verified as a level 3 B-BBEE PR F or further information on efforts to address non- tampering and non-payment continue to present the every public fatality remains one too many. contributor. Our strongest performance came in skills technical energy losses, refer to “Strengthening our greatest challenge. Our aspiration is to eradicate load development, supported by one of the largest learner infrastructure – Curbing non-technical losses” on reduction nationally by March 2027. Coal haulage remains an area of heightened focus pipelines in our history and a significant investment page 27 of this report given the associated road safety and infrastructure in learning. Participation in the Youth Employment risks, particularly on the corridors linking Service (YES) programme contributed to this Mpumalanga-based coal mines to our power stations. outcome, as did continued development of artisans, We promoted driver and vehicle safety, participated engineers, technicians and plant operators. Sustained in national road safety campaigns and worked with investment in enterprise and supplier development, contractor operators to reinforce compliance with socio-economic contributions and procurement speed, fatigue and roadworthiness standards. This will transformation supported our overall rating. We remain a priority as production stabilises. continue to work towards achieving level 2 B-BBEE status by FY2029, in line with the shareholder’s expectations. 42 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Sustaining communities continued GROUP PROCUREMENT EQUITY ENTERPRISE AND SUPPLIER DEVELOPMENT Enterprise and supplier development is where our procurement spend translates most directly into economic Target Target Target Target Actual Actual Actual participation. We invested R10.52 million in enterprise development, more than double our target. We Measure and unit 2029 2027 2026 met? 2026 2025 2024 also directed R7.66 billion to supplier development, exceeding our R6 billion target, driven largely through Preferential procurement, % of total subcontracting and localisation-linked procurement, with Generation and NTCSA contributing the largest share. 90.00 90.00 80.00 94.58 93.21 74.35 measured procurement spend (TMPS) SC Enterprise development activity focused on building capability among small suppliers through business skills Procurement from black-owned (BO) training, tender guidance and support to register on National Treasury's central supplier database (CSD). 40.00 40.00 40.00 58.69 51.02 38.82 suppliers, % of TMPS Procurement from black women-owned 12.00 12.00 12.00 18.02 11.60 8.29 (BWO) suppliers, % of TMPS FROM TRAINING ROOM TO SUBCONTRACTING: THE SELMOT PROJECTS STORY Procurement from black youth-owned (BYO) suppliers, % of TMPS 2.00 2.00 2.00 6.04 5.17 4.53 Selmot Projects, an SMME based in Bodibe Village in North West, participated in our supplier Procurement spend with suppliers development programme and received support with CSD registration. This enabled Selmot to secure owned by black persons with disabilities 1.00 1.00 1.00 0.54 0.42 0.10 a subcontract on our smart meter replacement programme, installing 500 smart meters over one (BPwD), % of TMPS month – a practical example of how supplier development activity translates into tangible work for local Procurement spend with qualifying small businesses. 15.00 15.00 15.00 8.18 7.54 4.50 enterprises (QSE), % of TMPS Procurement spend with exempted 15.00 15.00 15.00 7.23 7.03 4.65 Building on this foundation, we are advancing a broader industrialisation and localisation agenda that connects micro enterprises (EME), % of TMPS our procurement to South Africa's manufacturing base. In FY2027, we plan to invest around R211 million in enterprise development and R423 million in supplier development, focused on SMME incubation, funding During the year, we demonstrated measurable In response, we are advancing targeted interventions partnerships, compliance and certification training as well as market-access initiatives. progress against our shareholder compact through our SME Indaba, enterprise and supplier commitments and national transformation objectives, development (ESD) walk-in centres, expanded In parallel, we will finalise our industrialisation strategy in FY2027 in partnership with the Department of Trade, with strong performance across preferential market-access initiatives and focused supplier Industry and Competition (the dtic) and the Industrial Development Corporation of South Africa (IDC). The procurement from several categories of suppliers, development support for BWO businesses, emerging strategy aims to localise the manufacture and supply of key components across our value chain, creating jobs, together with localisation, supplier development and enterprises and other designated groups. As the developing skills, reducing import dependency and strengthening supply chain resilience at a time when global enterprise support. We use procurement to help enabling framework matures, these measures will supply chain risk is on the rise. In doing so, we intend the energy transition to be a jobs and economic transition create jobs and build the small and black-owned help broaden participation and strengthen the as much as a technical one, ensuring that communities and designated groups share in the opportunities it businesses that broaden participation in the economy. contribution of procurement to inclusive socio- creates. economic transformation. Preferential procurement remained strong, with most of our measured spend directed to B-BBEE-compliant SR Further detail on our enterprise and supplier development is set out in the sustainability report suppliers. Procurement from black-owned, black BRINGING SUPPLIERS INTO THE ROOM youth-owned and black women-owned suppliers During the year, more than 450 small, was particularly robust, reflecting a deliberate shift medium and micro enterprises (SMMEs) from simply including emerging enterprises in our participated in supplier forums hosted across procurement activities to positioning them to grow our operating units, giving entrepreneurs and compete. direct access to our procurement teams to assist in addressing queries and challenges. We recognise that participation remains uneven The forums help suppliers understand our across the supplier base. Spend with suppliers owned requirements, strengthen governance and by black persons with disabilities as well as qualifying compliance, improve tender readiness and small and exempted micro enterprises has been identify opportunities within our supply chain slower to improve. Routing sufficient volume through – a practical mechanism for building a broader, these smaller, more specialised categories remains a more competitive supplier base. challenge, compounded by the delay in finalising the regulations to the Public Procurement Act, 2024. 43 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Sustaining communities continued MAXIMISING OUR SOCIO-ECONOMIC CONTRIBUTION Affordability is central to the value this programme funding and site readiness. In response, we are scaling creates. Through Government’s free basic electricity distributed energy solutions where grid delivery Target Target Target Target Actual Actual Actual (FBE) programme we support qualifying indigent is impractical, standardising rooftop solar designs Measure and unit 2029 2027 2026 met? 2026 2025 2024 households with a monthly free allocation, delivered in and processes with DEE, as well as expanding our Total electrification connections, partnership with municipalities. At year end, more than eMobility footprint with electric vehicle tariffs that 121 812 33 810 41 340 67 578 83 031 114 800 number SC 493 000 of the 571 000 registered beneficiaries were reward off-peak charging, extending access while Corporate social investment actively collecting their allocation, easing cost-of-living advancing decarbonisation. 600.00 200.00 146.10 153.25 146.20 93.10 committed spend, R million SC pressures for vulnerable customers. Improving uptake Corporate social investment, and strengthening the FBE framework in collaboration CORPORATE SOCIAL INVESTMENT 5 300 000 1 500 000 600 000 1 510 540 1 203 566 272 217 number of beneficiaries with DEE remains a priority. The Eskom Development Foundation, our wholly owned subsidiary, leads the delivery of our corporate 1. The 2029 target is the cumulative target over the next three years. We remain focused on the headwinds ahead: a social investment (CSI) strategy, translating our persistent backlog, demand for connections outpacing developmental mandate into tangible community Our socio-economic contribution reaches beyond During the year, we exceeded our target for our capacity to roll out, and affordability pressures impact. The strategy is structured around six focus procurement into the daily lives of the communities connecting households to the grid, delivering both on indigent customers. This year’s connections, while areas covering education, health, environmental we serve. Through electrification, corporate social new connections in partially served communities ahead of target, were lower than the figure delivered sustainability, enterprise development, food security investment and community upliftment aligned to and completing rollovers from prior years. In areas in the prior year, reflecting constraints around grant and rural development. our developmental mandate, each connection, where grid extension is impractical because of learner and project delivered represents social value distance, terrain or cost, we expanded access through created, and often restored, where reliable electricity distributed energy solutions, energising 2 119 off-grid underpins economic participation. connections. The majority of these came through our flagship smart village microgrid project in the Vhembe ELECTRIFICATION District of Limpopo, complemented by containerised Under the Government-funded electrification microgrids commissioned in the Northern Cape, programme, we continued to connect previously Mpumalanga, Limpopo and Gauteng. underserved households across Eskom's licensed areas of supply, in support of South Africa's goal of universal access by 2030. Beyond infrastructure, this work improves welfare, enables economic participation and supports inclusive growth. Building social foundations SMART VILLAGE MICROGRID PROJECT for sustainable economic In December 2025, the Minister of Electricity and Energy officially launched our smart village microgrid growth and a better project for the Madimbo and Mavhete communities in the Vhembe District of Limpopo. This is an Eskom- life for all funded, solar-powered microgrid delivering reliable clean electricity to a remote rural community. What it delivers: • Reliable electricity to more than 700 households, a primary school and a local clinic • High-mast lighting which improves public safety after dark • Free Wi-Fi at local government facilities, unlocking access to digital services, education and small business opportunities The project shows how solar generation, storage and digital infrastructure can be integrated to serve communities where grid extension is not economically feasible. It forms the national blueprint for rural electrification, with plans to replicate the model across around 50 villages over the next four years. 44 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Sustaining communities continued  efer to the Corporate Social Responsibility (CSR) SR R R153 million 1.5 million 950 SMMEs R27.3 million section of sustainability report, which highlights a selection of our flagship CSI projects Committed across Beneficiaries reached across the year Supported through enterprise Directed to clean energy under As we look ahead, our CSI focus remains anchored 74 projects development Light Up SA in our developmental mandate and our JET strategy. Priority initiatives include support for community electrification programmes, expanded development of SMMEs and localisation in support of B-BBEE, and continued investment in coal-dependent communities as we advance our transition pathway. Meeting the Environmental Enterprise Rural cumulative CSI committed spend target of R600 Education Health Food security sustainability development development million by FY2029 will require sustained annual investment and continued mobilisation of external partnerships, an ambition which depends as much on the strength of those partnerships as on our own contribution. During the year the Foundation and Eskom divisions approved 74 projects with total committed CSI spend On 29 January 2026, we officially launched the Grootvlei Climate Smart Horticulture Centre at of R153.25 million, reaching more than 1.5 million Grootvlei Power Station. The centre is a practical example of how the transition from a high-carbon beneficiaries and supporting 950 SMMEs. These economy can be linked directly to local economic opportunity, climate-smart food production and numbers are guided by a firm goal: investment skills development. Short-course training has commenced, with the site progressing into a smart demo where it has the most direct effect on people’s training centre targeting 60 agripreneurs annually, alongside commercial horticulture and mushroom lives. Education and skills development remained production. a priority, with science, technology, engineering, mathematics and innovation (STEMI) school support programmes rolled out across all nine provinces, with continued sponsorship of the Eskom Expo for Young Scientists. Support of SMMEs reinforced our contribution to inclusive economic participation, while our Light Up SA programme extended reliable clean electricity to strategic and underserved communities, complementing our broader electrification agenda. A total of R27.3 million was directed towards clean energy infrastructure initiatives in support of this objective. Mid November 2026 We also concluded strategic partnerships during the year to extend the reach of our CSI activities, most notably in collaboration with the Government of the Netherlands and the Mpumalanga Provincial Government to establish the Grootvlei Climate Smart Horticulture Centre, a flagship Just Energy Transition (JET) project discussed further in the JET section below. Mid November 2025 Mid April 2025 45 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Sustaining communities continued JUST ENERGY TRANSITION and new economic opportunities. This is where our significant step to accelerate this transition. On REPOWERING AND REPURPOSING Our JET strategy is anchored in a simple but social and relationship capital is most directly at stake, 9 June 2026, we launched Eskom Green SOC Ltd, Building on the socio-economic impact assessments demanding ambition: to move South Africa towards and where the value we create or erode will be felt a dedicated utility-scale renewable energy business. completed at our coal-fired stations, we continued a lower-carbon economy without compromising for a generation. Our strategy is built on the five E’s, We secured the section 54(2) approvals under the to prioritise repowering and repurposing (R&R) at energy security or affordability, or the communities namely employment, environment, economy, equity Public Finance Management Act, 1999 (PFMA) on Komati, Camden, Grootvlei, Hendrina, Arnot and that have long powered it. The transition must be and energy, which together shape how we weigh 16 July 2026 to establish Eskom Green as a wholly Kriel. R&R activities remain decoupled from station more than technological, it must be human, ensuring trade-offs and sequence decisions. owned subsidiary. By repowering and repurposing our operations and decommissioning schedules, allowing that the workers, families and communities most coal-fired station sites, Eskom Green is designed to us to transition responsibly without compromising affected by the retirement of ageing coal-fired power During the year, we strengthened alignment between sustain economic activity in affected regions, support security of supply. stations are supported through new skills, new jobs our transition pathway and the Integrated Resource skills transition and anchor new local economies Plan (IRP) 2025. Since year end, we have taken a around clean energy, reinforcing the people-centred Komati continues to serve as our pilot – the site ambition at the heart of our transition. where our approach is tested, refined and shaped into a blueprint we can scale across the fleet. The KOMATI POWER STATION FY2026 MILESTONES – OUR JET PILOT IN ACTION five milestones we delivered during the year are Five key milestones achieved during the year as we repower, repurpose and create lasting value for our people, our communities and our country highlighted below. 800 individuals trained – Training centre Containerised Grootvlei climate-smart Copper recycling plant 447 community members refurbished and handed microgrids assembly horticulture facility at 52.5% completion and contractors and 353 over progressed commissioned Eskom employees Creating local opportunities Supporting re- Building the skills and Supporting skills development Advancing off-grid solutions through sustainable industrialisation, local capability needed for a for a Just Energy Transition to extend reliable, clean agriculture and skills value creation and job sustainable, low-carbon energy to communities development opportunities future Looking ahead: over 1 000 new jobs and more than 1 000 site-based training opportunities over the next five years Behind these milestones sits a consistent thread: real an owner’s engineer and uncertainty over recoverable During the year, we extended our R&R programme skills, real jobs and real economic opportunities for copper volumes. Rather than commit prematurely, we into the Climate Investment Fund (CIF) blended the communities most exposed to the transition. paused implementation and we’re recalibrating the financing envelope to include Kriel and Arnot Our R&R programme is targeting around a business case to incorporate alternative feedstocks alongside Camden, Grootvlei and Hendrina. thousand new jobs in coal-dependent communities and sources beyond Komati, so that the project This unlocks additional multilateral, development across the priority sites, with a deliberate focus delivers sustainable value. finance institution (DFI) and private-sector funding on local employment, skills transfer and enterprise to accelerate delivery over the next five years, participation. Progress has been made, though not IR Further detail on the progress of the Komati copper reinforcing the credibility of Eskom's transition without setbacks that we are managing openly. recycling plant is disclosed in "Sustainability indicators pathway with international partners. Our Komati copper recycling plant reached 52.5% selected for reasonable assurance" on page 104 of the completion against the project milestones set by the integrated report shareholder, with construction not yet started at year end, having been delayed by the late appointment of 46 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Sustaining communities continued Over the next five years, we plan to scale R&R across The credibility of our transition depends on the our priority sites, including: confidence and involvement of the communities • Komati: new commercial facilities including most affected by it. During the year, we continued to microgrid assembly and battery integration engage affected communities in close collaboration • Camden: tyre recycling facility supporting circular- with local and provincial government, ensuring that economy outcomes our transition remains people-centred and that those most affected are supported through every • Grootvlei: fully operational smart demo training step of the journey. Engagement covered workforce centre progressing from short-course training transition planning, local enterprise opportunities, to full commercial horticulture and mushroom skills development pathways and the social investment production initiatives that support community resilience during • Hendrina: liquefied petroleum gas manufacturing the transition period. This sustained engagement and SMME development is how we preserve the social licence on which the • Arnot and Kriel: preparation of repurposing plans entire transition depends, and we are candid that supported through the extended CIF financing where engagement falls short, as the lessons from envelope following stakeholder engagement and Komati have shown, the risk is not only to timelines socio-economic assessment but to community trust. In parallel, our clean coal programme continues to advance high-efficiency low-emissions technologies, SR F urther detail on social initiatives in repowering carbon capture pilots, direct sorbent injection and and repurposing (R&R) is disclosed under “Social long-duration energy storage demonstrations through Initiatives in Repowering and Repurposing (R&R)” in our Research, Testing and Development Department. our sustainability report Together, these initiatives strengthen the technical and commercial credibility of Eskom's transition pathway across the full coal value chain. PR F urther information on these initiatives is provided under “Strengthening our infrastructure – Research and development projects” from page 30 47 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Condensed annual financial statements The financial results set out in the condensed financial statements that follow have been extracted from the annual financial statements of the Eskom Holdings SOC Ltd group for the year ended 31 March 2026. The financial statements have been prepared in accordance with IFRS Accounting Standards and in the manner required by the Companies Act, 2008 and the PFMA, 1999. The financial statements have been prepared under the supervision of the Group Chief Financial Officer, Calib Cassim CA(SA), and were approved by the Board of Directors on 30 August 2026. The financial statements have been audited by the group’s independent auditors, Deloitte & Touche, in accordance with International Standards on Auditing. The independent auditors issued a qualified opinion relating to the completeness of irregular expenditure disclosed in terms of the PFMA. Except for this qualification, the financial statements are considered to be fairly presented in terms of IFRS Accounting Standards and the requirements of the Companies Act and the PFMA. AFS T  he financial statements, which detail the financial performance of the group and company, and accompanying notes are available at www.eskom.co.za/investors/integrated-results/ 3 RESTATEMENT OF COMPARATIVES The income statement and statement of financial position for FY2025 have been restated. Guarantee fees payable to the National Revenue Fund were not recognised despite covenant ratios for FY2025 exceeding the thresholds outlined in the Guarantee Framework Agreement (GFA). The fee is calculated on the accumulated amounts utilised under the guarantee facility and is payable by June 48 Condensed annual financial statements following the end of the financial year. The omission resulted in the understatement of finance costs and and commentary current liabilities by R980 million. 52 Enhancing financial sustainability In addition, no provision was recognised for public liability claims against Eskom, with the omission resulting in the understatement of other operating expenses and the related insurance provision by R1 026 million. These restatements had no impact on the statement of cash flows other than the note disclosure relating to cash generated from operations, with no overall impact on net cash from operating activities. All financial information presented in this report reflects the restated results where applicable. AFS Refer to note 49 in the financial statements for more information on the prior period restatement The group’s independent auditors have not reviewed or reported on the future performance plans or strategies referred to in the integrated report. 48 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Condensed annual financial statements continued CONDENSED GROUP INCOME STATEMENT The non-payment of municipal, metro and residential Other operating expenses increased in part due for the year ended 31 March 2026 accounts continued to constrain our financial to inflationary pressures and moderate growth in performance, with a net amount of R15.8 billion (around repairs and maintenance expenditure. Also included Restated 4.5% of revenue) not recognised as revenue due to the in other operating expenses is a net loss of R1 billion 2026 2025 elevated risk of non-collectability (2025: R11.9 billion). associated with municipal payment arrangements Rm Rm % that were implemented in FY2026 – this loss was Revenue 354 724 340 895 4 Despite lower sales volumes and revenue collection raised upon derecognition of the associated trade Other income 1 283 3 265 61 challenges, the containment of primary energy costs receivables and recognition of the related loans Primary energy (151 896) (150 207) 1 supported the group’s profitability. Primary energy receivable. Employee benefit expense (48 060) (43 160) 11 costs increased marginally year-on-year; however, when Net impairment loss and write-downs (1 117) (7 616) 85 2 excluding the impact of fuel levy refunds, costs in fact The significant reduction in net impairment losses was Other expenses (46 286) (45 165) declined by 7%. Improved coal fleet performance and a result of these payment arrangements, which led Profit before depreciation and amortisation expense and net fair value and the return to service of both Koeberg units – which to improved arrear debt positions for key metros by 108 648 98 012 11 foreign exchange loss (EBITDA) have the lowest primary energy unit cost – reduced year end, including the City of Johannesburg and the Depreciation and amortisation expense (36 335) (31 764) 14 reliance on more expensive sources of generation. Most City of Tshwane. However, the City of Johannesburg Operating profit 72 313 66 248 9 notably, utilisation of open-cycle gas turbines (OCGTs) breached the conditions of its payment arrangement Net fair value and foreign exchange loss (1 126) (10 415) 89 more than halved year-on-year, resulting in a combined in April 2026; a revised payment arrangement Profit before net finance cost 71 187 55 833 27 R10.6 billion reduction in spend on Eskom-owned was concluded in July 2026. City of Johannesburg Net finance cost (31 886) (34 072) 6 OCGT fuel and storage costs as well as IPP OCGT costs. honoured the revised arrangement, fully settling its Finance income 8 447 6 840 23 arrear debt by 21 August 2026. Finance cost (40 333) (40 912) 1 The reduction in costs was partially offset by higher 2 employee benefit costs, driven mainly by average Share of profit of equity-accounted investees after tax 100 102 PR Refer to “Enhancing financial sustainability – Managing remuneration increases of 7% granted to employees Profit before tax 39 401 21 863 80 coupled with a 3% growth in headcount, as well as municipal debt” from page 62 for further detail on the Income tax (9 056) (7 822) 16 arrear debt owed by these metros higher production bonuses and a provision under Profit for the year 30 345 14 041 116 the short-term incentive (STI) scheme to reward employees for improved organisational performance. Depreciation and amortisation expense increased Income/gain increased Cost/loss decreased Income/gain decreased Cost/loss increased A total STI obligation of R5.1 billion (including a 13.5% following the commissioning of additional generating employer pension contribution) was recognised at capacity through the new build programme, with the The financial results for FY2026 reflected improved – particularly among ferrochrome smelter customers year end (2025: R4.2 billion). These incentive schemes final Kusile unit achieving commercial operation. EBITDA and profitability, underscoring the group’s that curtailed production due to sustained economic are structured to reward employees for delivering sustained progress in delivering structural operational pressures. The continued impact of embedded self- Finance costs reduced due to a decline in debt improved performance, and remain self-funded from and financial improvements. Performance was generation added to the decline in sales, with installed securities and borrowings together with favourable the performance gains and operational cash flows they underpinned by a higher tariff, improved operational behind-the-meter rooftop solar capacity in South interest rate movements during the year. This was generate. Strict gatekeepers and qualification criteria performance and disciplined cost management. This Africa estimated at 7.7GW at year end. partially offset by lower capitalisation of borrowing are in place to ensure that payouts are only triggered was further aided by Government’s debt relief, which costs, with the commissioning of new build units In March 2026, Mozal smelter operations went where performance thresholds are met, protecting the continues to support the deleveraging of the balance reducing assets under construction. Finance income into care and maintenance, resulting in a significant group’s financial sustainability. The increase in incentives sheet over time. grew due to our strengthened cash and investment reduction in electricity demand from FY2027. The loss is directly linked to the measurable performance gains achieved during the year. balances. Refer to the condensed statement of financial Notably, performance in the prior year benefited of these export sales negatively affects the near-term position on the following page for further detail on from favourable once-off adjustments relating to the sales and revenue outlook. We are engaging with Looking ahead, we will continue to optimise our debt securities and borrowings as well as liquidity. resolution of a dispute with SARS regarding fuel levy Mozal and the Industrial Development Corporation cost base by driving higher productivity across the refunds. Excluding the impact of the fuel levy refunds, of South Africa to find a viable solution to this latest Given our improved financial results, R1 billion has workforce and delivering improved organisational EBITDA increased by 28.4% and profit before tax challenge. Several interventions are underway to been recognised in fees payable to the National performance, while aligning rewards with operational more than quadrupled year-on-year. support energy-intensive customers as well as to Revenue Fund, based on meeting financial covenant and financial outcomes. address the structural declining sales trend. thresholds outlined in the GFA (2025: R1 billion, Revenue growth of 4.1% was driven by a regulatory restated). standard tariff increase of 12.74% from 1 April 2025, GR Refer to “Ensuring fair remuneration – Remuneration partially offset by a 6.2% decline in sales volumes to PR Refer to “Enhancing financial sustainability – Financial practices for employees” in the governance and 178TWh (2025: 189.7TWh). The decline in demand performance” from page 53 for further information remuneration report for further information on the on sales volumes was most pronounced in the industrial sector – STI scheme which reduced by 9.7TWh or 22.5% year-on-year 49 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Condensed annual financial statements continued CONDENSED GROUP STATEMENT OF FINANCIAL POSITION The group’s financial position strengthened further in FY2026, In addition, the group has recognised R22.1 billion as treasury at 31 March 2026 supported by improved operating performance and profitability, investments (2025: R2.6 billion), which includes R3 billion Restated as well as the continued benefit of Government debt relief, (including interest) set aside for future nuclear decommissioning 2026 2025 which has accelerated the deleveraging of the balance sheet activities as directed by the National Nuclear Regulator, while Rm Rm % and bolstered liquidity. discussions on a permanent solution continue. Assets Non-current assets 773 424 744 546 4 Government support of R80 billion was received in March 2026, Maintaining sufficient liquidity remains critical for executing our Property, plant and equipment and intangible assets 706 754 689 556 2 based on the phasing of the amended debt relief package, and future capital expenditure programme and delivering sustained Future fuel supplies 10 333 7 639 35 was recognised as a shareholder loan at year end, together operational improvements. Refer to the condensed group Investment in equity-accounted investees with accrued interest (2025: R64 billion support received, of statement of cash flows on the following page for further detail 302 346 13 and subsidiaries which R56 billion was recognised as a liability at year end). The on operating, investing and financing cash flows for the year. Inventories 16 278 15 373 6 Loans receivable 10 235 1 583 547 shareholder loan balance at 31 March 2025 was approved for conversion to equity by the Minister of Finance in June 2025 due Capital expenditure increased by 9.4% to R45 billion Deferred tax 21 7 200 Embedded derivatives 1 246 3 847 68 to Eskom’s continued compliance with the debt relief conditions, (2025: R41.1 billion), with improved liquidity allowing for an Derivatives held for risk management 7 700 13 320 42 after which the related share capital issued. Similarly, the balance increased allocation to the project pipeline and the earlier Treasury investments 2 930 2 638 11 at 31 March 2026 was approved for conversion to equity in release of funds for the execution of capital projects. Continued Insurance investments 6 960 3 393 105 investment in sustaining generation performance, strengthening Other non-current assets 10 665 6 844 56 August 2026, further strengthening the group’s capital structure. Interest is charged and paid on all debt relief received until network infrastructure and completing the new build programme Current assets 248 432 159 474 56 contributed to growth in our asset base, with property, converted to equity. Inventories 37 268 31 084 20 plant and equipment increasing by 2.5% to R702.9 billion Loans receivable 1 235 309 300 Debt securities and borrowings (excluding the shareholder loan) (2025: R686 billion). Embedded derivatives 278 125 122 Derivatives held for risk management 2 064 2 025 2 decreased to R356.2 billion (2025: R372.7 billion), reflecting Trade and other receivables 41 923 ongoing efforts to reduce external debt with Government Additions to future fuel supplies and growth in inventories reflect 40 886 2 Treasury investments 19 178 – – support, also aided by favourable exchange rate movements our investment in securing the availability of coal and nuclear fuel Insurance investments 21 313 18 925 13 on foreign-denominated borrowings. Debt repayments of resources, alongside increased working capital requirements, Other current assets 1 308 1 322 1 particularly for coal and liquid fuel, as well as maintenance spares Cash and cash equivalents 124 902 63 761 96 R16.8 billion exceeded debt raised of R1.4 billion during the year. In addition, an existing China Development Bank (CDB) facility of and consumables, to support execution of the Generation Assets held-for-sale – 7 811 – Reliability and Sustainability Plan. R20.1 billion was converted from USD to CNY, which converted Total assets 1 021 856 911 831 12 the debt from a floating interest rate to a lower fixed interest rate. Equity In the prior year, the Board approved the disposal of the loan Capital and reserves 360 916 276 339 31 Cash and cash equivalents increased to R124.9 billion book of Eskom Finance Company SOC Ltd (EFC) and its interest Liabilities in Nqaba Finance 1 (RF) Ltd to African Bank Limited, resulting Non-current liabilities 437 545 478 759 9 (2025: R63.8 billion) at year end, supported by stronger operating cash flows linked to strong EBITDA growth, along in the related assets and liabilities being classified as held- Debt securities and borrowings 296 294 351 226 16 Derivatives held for risk management 836 with the R80 billion in debt relief from Government received for-sale in terms of IFRS Accounting Standards. The disposal 3 288 293 Deferred tax 11 577 11 389 2 in March 2026. Of this, R38 billion was earmarked for the agreements, concluded in FY2025, were subject to the fulfilment Contract liabilities and deferred income 35 463 34 041 4 settlement of the domestic ES26 bond, which matured on of certain conditions precedent. These conditions were not Employee benefit obligations 22 533 19 672 15 fulfilled by 31 March 2026 and the disposal agreements lapsed. 2 April 2026, further reducing our debt balance after year end. Provisions 55 491 48 197 15 Consequently, the related assets and liabilities no longer meet Lease liabilities 5 697 6 598 14 By honouring this significant commitment, we are delivering Other non-current liabilities 7 202 6 800 6 on our financial strategy by deleveraging the balance sheet and the criteria for classification as held-for-sale, and home loans and 156 127 reducing our market risk premium and future finance costs. other loans by EFC have once again been recognised as loans Current liabilities 223 395 43 receivable in the group’s financial statements. Debt securities and borrowings 59 901 21 429 180 Loan from shareholder 80 076 56 132 43 Furthermore, R21.3 billion of cash and cash equivalents has Derivatives held for risk management 1 565 811 93 been earmarked for decommissioning activities and clean energy AFS Refer to note 23 in the financial statements for further information Payments received in advance 4 219 3 636 16 projects, comprising R4.3 billion for nuclear decommissioning, Employee benefit obligations 9 726 7 584 28 R7.2 billion for coal decommissioning and R9.8 billion for clean Provisions 5 031 6 105 18 energy initiatives. Trade and other payables 56 272 55 020 2 Other current liabilities 6 605 5 410 22 Liabilities held-for-sale – 606 – Total liabilities 660 940 635 492 4 Total equity and liabilities 1 021 856 911 831 12 Asset/equity increased Asset/equity decreased Liability decreased Liability increased 50 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Condensed annual financial statements continued CONDENSED GROUP STATEMENT OF CASH FLOWS Net operating cash flows increased by 12.4% to allocations to treasury investments earmarked for for the year ended 31 March 2026 R96.6 billion (2025: R85.9 billion), driven by improved future capital requirements. Before these allocations, EBITDA performance. Given the restrictions on new free cash flows amounted to R43.1 billion, which was Restated 2026 2025 borrowings imposed by the Eskom Debt Relief Act, sufficient to fully fund the group’s capital investment Rm Rm % 2023 as amended, generating sufficient operating cash programme from operational cash generation flows remains critical to fund our investing activities. – an important indicator of our strengthening Cash flows from operating activities financial position. Funds from operations (FFO) as a Profit before tax 39 401 21 863 80 Net cash flows used in investing activities increased by percentage of gross debt also improved to 23.79% Adjustment for non-cash items 87 419 91 631 5 64.1% to R72.8 billion (2025: R44.4 billion), driven by (2025: 21.82%, restated), reflecting the group’s Changes in working capital (22 407) (20 128) 11 higher allocations to treasury investments, together improved credit strength. Cash generated from operations 104 413 93 366 12 with growth in capital expenditure. Investing activities Net cash used in derivatives held for risk management (1 177) (1 436) 18 remained focused on executing the new build While debt servicing requirements of R46.7 billion Finance income received 390 441 12 programme, generation outages and technical plan exceeded free cash flows, the shortfall has narrowed Finance cost paid (7) (26) 73 requirements, expanding transmission and distribution significantly. Going forward, this is being addressed Income taxes paid (7 035) (6 400) 10 infrastructure, as well as setting aside sufficient through a balanced funding strategy that combines funding for long-term decommissioning provisions and Government’s remaining debt relief support of Net cash from operating activities 96 584 85 945 12 the development of future renewable energy projects. R10 billion due in FY2029 with targeted debt raising Cash flows used in investing activities from FY2028 for future capital investments. This Proceeds from disposal of property, plant and equipment and intangibles 664 292 127 The debt relief conditions allow Eskom to continue positions Eskom to reduce reliance on Government Acquisitions of property, plant and equipment and intangibles (48 418) (39 989) 21 to draw down on existing facilities that were in place support as operational performance and cost Acquisitions of future fuel supplies (2 959) (3 388) 13 at the time, with any additional financing beyond optimisation initiatives continue to strengthen Acquisitions of treasury investments (19 324) (1 397) 1 283 that being subject to approval from the Minister of cash generation over time. Net acquisitions of insurance investments (5 547) (3 242) 71 Finance. Cash flows from financing activities included Finance income received 2 884 2 321 24 debt raised from existing facilities of R1.4 billion, Strengthening our liquidity position and holding Other investing activities (130) 1 030 113 excluding the conversion of the CDB facility the necessary reserves are essential for providing referred to earlier (2025: R8.7 billion). Total cash the financial headroom for improved planning and Net cash used in investing activities (72 830) (44 373) 64 outflows relating to debt repayment and interest, execution. This enables sustained investment in Cash flows from/(used in) financing activities also excluding the CDB conversion, amounted to infrastructure maintenance and expansion, as well Debt securities and borrowings raised – DFI funding 1 361 8 683 84 R46.7 billion (2025: R79.8 billion). The R80 billion as grid reliability and emission reduction, which are Debt securities and borrowings raised – conversion of CDB facility 20 137 – – debt relief support received in March 2026 aided us critical to supporting operational performance and Loan from shareholder raised 80 000 64 000 25 in meeting these obligations and also facilitated the security of supply, and enabling the energy transition. Debt securities and borrowings repaid (16 768) (46 424) 64 settlement of the ES26 bond in April 2026. Sufficient liquidity is also needed to meet regulatory Debt securities and borrowings repaid – conversion of CDB facility (19 990) – – requirements for funding long-term decommissioning Net cash (used in)/from derivatives held for risk management (667) 4 555 115 Overall, our liquidity strengthened significantly during obligations. Finance income received 4 556 2 217 106 the year, supported by improved operating cash Finance cost paid (29 963) (33 364) 10 flows, debt relief support and reduced debt servicing To improve cash flows on a standalone basis, without Other financing activities (1 135) (974) 17 obligations. The cash interest cover and debt service reliance on further Government support, will require Net cash from/(used in) financing activities 37 531 (1 307) 2 972 cover ratios improved to 3.80 and 1.55 respectively sustained improvements in operational performance (2025: 2.76 and 1.11). Excluding the CDB conversion, and continued cost discipline, as well as effectively Net increase in cash and cash equivalents 61 285 40 265 52 the debt service cover ratio amounted to 2.29. addressing structural constraints impacting revenue, Cash and cash equivalents at the beginning of the year 63 761 23 585 170 including defaulting municipalities, the declining sales Foreign currency translation (2) – – Free cash flows, measured as operating less trend and the lack of a long-term tariff path. Effect of movements in exchange rates on cash held (168) (63) 167 investing cash flows, declined to R23.8 billion Assets and liabilities held-for-sale 26 (26) 200 (2025: R41.6 billion), primarily due to increased Cash and cash equivalents at the end of the year 124 902 63 761 96 Inflow increased Inflow decreased Outflow decreased Outflow increased 51 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Enhancing financial sustainability Financial capital is managed through an integrated tariff supported revenue growth, while the improved Financial sustainability cannot be achieved through • Driving structural cost efficiencies through the approach that links operations, investment priorities operating environment enabled efficiencies and any single intervention; it requires a coordinated Cost Optimisation and Revenue Enhancement and financing decisions, within the bounds of Eskom’s continued cost discipline. Together, these contributed response to structural pressures affecting revenue, (CORE) programme, to reduce our cost base risk appetite and tolerance framework, to support to enhanced financial performance, with the group costs, liquidity and the balance sheet, while ensuring in a sustainable manner and support targeted sustainable value creation. Strong operational delivering improved profitability and strengthened readiness for a reformed and increasingly competitive improvements in the EBITDA margin performance drives improved financial outcomes, liquidity in FY2026, laying a solid foundation from electricity market. • Optimising the balance sheet by improving cash while a stable financial position provides the which to advance our strategic priorities. generation, strengthening liquidity and working liquidity needed to execute our strategy and sustain While progress has been made in stabilising liquidity, capital discipline, and progressing toward a operational improvements. Our financial strategy places operations at the centre, with support from Government’s debt relief sustainable capital structure that is not reliant on supported by four interdependent pillars – revenue programme, the group continues to operate in a Government support or guarantees Over the past year, we have sustained the gains first security, cost efficiencies, balance sheet optimisation constrained financial environment. An uncertain • Resolving municipal debt at a structural level seen in FY2025, achieving further improvements in and municipal debt reduction – underpinned by key long-term tariff path, a constrained sales environment in collaboration with key stakeholders, shifting plant performance and system reliability. A higher strategic enablers to enable long‑term sustainability. and escalating municipal arrear debt are key structural from collection-focused approaches to revenue pressures which have limited Eskom’s ability to service protection and reforms that address the root our significant debt balance at an appropriate pace causes of non-payment and fully recover our costs. At the same time, the STRATEGIC Future-fit Improved unqualified Standalone investment – Sustainable broader energy landscape is evolving, with regulatory These pillars are supported by critical strategic OBJECTIVES: Finance audit outcomes grade status competitiveness reform and the transition toward a competitive enablers – including our audit recovery programme, Profitability market fundamentally changing how revenue is digital transformation, enhanced integration of generated and recovered, while also presenting environmental, social and governance (ESG) further opportunities for growth. principles, unbundling readiness and a refreshed Improve income statement operating model – to enable more effective financial Strengthen balance sheet Against this backdrop, our financial strategy is and operational management in a complex and focused on stabilising performance in the near term 4 ANCHOR PILLARS Revenue security Balance sheet evolving environment. and enhancement optimisation while building financial sustainability and resilience – positioning the group to achieve standalone Collectively, these actions aim to improve earnings investment-grade status over time. This is anchored on: quality, strengthen cash generation and liquidity, OPS • Securing and enhancing revenue by retaining and as well as support a more sustainable long-term growing electricity demand, diversifying revenue capital structure. This is essential to fund operational Municipal debt streams in preparation for market reform, requirements and future investment in maintaining Cost efficiencies reduction strengthening revenue collection and improving and expanding our infrastructure, to strengthen tariff structures to enable better cost recovery financial independence and, ultimately, to deliver – recognising that structural reform is key to consistent, reliable and cost-effective electricity. sustainable revenue Liquidity Leverage Enable Audit 6 STRATEGIC INITIATIVES INITIATIVES INITIATIVES unbundling recovery STRATEGIC STRATEGIC Talent and Digital culture transformation ESG Operating model integration refresh 52 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Enhancing financial sustainability continued FINANCIAL PERFORMANCE We achieved a profit before tax of R39.4 billion for the year (2025: R21.9 billion, restated) driven by an improved EBITDA margin, which was supported by a 12.74% standard tariff increase together with improved operational performance and cost discipline, mostly linked to reduced spend on open-cycle gas turbines (OCGTs). Overall, we delivered substantial improvements in our financial ratios and cash flows. Major contributors to the improvement in profitability, R billion 9.3 39.4 13.8 (0.9) (1.7) 2.2 (0.3) (4.9) 21.9 4% 1% 1% 11% 6% 89% PBT Revenue Primary Repairs and Employee Net finance Net fair Other PBT (2025) energy maintenance benefit cost cost value losses (2026) Profit before tax YOY cost reduction YOY cost growth YOY income growth Notably, performance in FY2025 benefitted from negotiated pricing agreements (NPAs). This was favourable once-off adjustments relating to the driven by NERSA’s relaxation of take-or-pay terms resolution of a dispute with SARS regarding fuel and approval of temporary tariff relief measures for levy refunds. Excluding the impact of the fuel levy industrial smelter customers (discussed in further refunds – of R14.2 billion in FY2025 and R1 billion in detail under “Sales and revenue” below). The fair FY2026 – primary energy costs in fact declined by value adjustment on foreign debt and related cross- R11.5 billion (around 7% year-on-year), mainly due to currency hedges also improved, supported by a the reduction in OCGT expenditure. stronger Rand and favourable interest rate, credit risk and hedge effectiveness adjustments. The net fair value and foreign exchange loss reduced to R1.1 billion (2025: R10.4 billion), a largely non-operational movement based on AFS Refer to note 39 in the financial statements for the remeasurement of embedded derivatives, further detail on net fair value losses. The critical accounting estimates and assumptions relating to foreign-denominated debt and hedging instruments. embedded derivatives are disclosed in note 4.1 The fair value loss on embedded derivatives reduced by R4.9 billion year-on-year, reflecting firmer commodity price assumptions, together with revised consumption forecast for smelter customers with 53 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Enhancing financial sustainability continued FINANCIAL RATIOS In FY2026, local sales declined by 10.5TWh primarily PR Refer to page 78 for the number of customers as well due to lower demand from industrial customers. Target Target Target Target Actual Actual Actual as electricity sales volumes and revenue by category Several ferrochrome smelters declared hardship and Measure and unit 2029 2027 2026 met? 2026 2025 2024 for the past five years halted production due to poor market conditions, or Gross electricity revenue per kWh otherwise experienced unplanned plant breakdowns (including environmental levy), c/kWh 237.60 213.23 206.34 212.37 187.98 165.43 Sales volumes have shown an overall declining trend during the year. (Eskom company) over the past decade, decreasing by around 2% per Electricity operating costs, c/kWh 179.56 157.91 145.83 138.30 128.16 137.71 year. The decline is driven by depressed economic International sales volumes also declined due to conditions; reduced consumption by energy-intensive extended outages at Mozal in Mozambique as well EBITDA, R million SC 95 094 92 974 90 020 108 648 98 012 43 410 industries; demand lost to energy efficiency initiatives as the termination of sales to Zimbabwe due to EBITDA margin, % 23.01 24.96 25.09 30.63 28.75 14.67 non-payment. However, international sales were higher and embedded self-generation (mainly rooftop solar Current ratio1 1.12 1.20 1.34 1.03 1.02 0.98 than planned due to improved generation availability, installations across many sectors, estimated at 7.7GW Free funds from operations (FFO), at year end); as well as customer wheeling initiatives. which enabled increased supply to cross-border 109 049 106 272 99 425 118 991 106 073 53 975 R million customers, with revised power supply agreements FFO after net interest paid, R million 90 938 85 010 73 565 93 584 74 926 19 830 Sales trend by major customer category, TWh concluded with Botswana and Namibia during the year. 1. Refer to the glossary of terms on page 68 for detail on the calculation of the current ratio. 83.8 The Mozal operations went into care and maintenance 79.5 76.1 79.0 78.3 during March 2026, resulting in a significant reduction in electricity demand from FY2027. The loss of these All financial ratios exceeded the target for the year, Sales volumes and revenue Industrial sales remains one of the most significant challenges except for the current ratio, which was negatively 45.2 44.6 22.5% 44.2 43.2 affecting the near-term sales and revenue outlook, affected by the recognition of an obligation for R billion +4.1% revenue TWh 33.5 reinforcing the need to accelerate initiatives aimed at -6.2% sales volumes 28.0 27.8 28.1 27.2 the short-term incentive (STI) scheme based on 400 210 27.3 retaining strategic load and developing new sources 27.9 25.8 25.7 FY2026 results. The target did not provide for 350 200 25.0 24.5 of demand. We are engaging with Mozal and the the STI scheme, as the scheme is self-funded and 300 13.3 11.4 10.4 14.5 13.3 Industrial Development Corporation of South Africa only triggered through improved operational and 250 190 2022 2023 2024 2025 2026 to find a viable solution to this latest challenge. financial performance during the year. The related 200 180 Redistributors Industrial Mining employee STI obligation was recognised as a current 150 International Other liability at year end, thereby negatively affecting the 170 PR For further information on international power supply 100 current ratio; the benefit of improved operational agreements refer to “Strengthening our infrastructure 160 Declining sectors in FY2026 performance impacted the income statement and 50 – Cross-border power imports and exports” from cash flows for the year. 0 2022 2023 2024 2025 2026 150 page 24 Industrial 9.7TWh (22.5%) Revenue Sales volumes International 1.2TWh (8.3%) SALES AND REVENUE Revenue for the group increased by 4.1% to Sales volumes per customer category, % Redistributors 0.7TWh (0.9%) R354.7 billion (2025: R340.9 billion), driven by a Agricultural 0.3TWh (5.7%) standard tariff increase of 12.74% for the year, partially 1% 7% Commercial 0.1TWh (0.9%) offset by a 6.2% decline in sales volumes to 178TWh 3% (2025: 189.7TWh). 5% 6% Growth sectors in FY2026 Excluded from revenue are amounts billed to municipal and residential customers that could 2026 44% Residential 0.3TWh (3.0%) not be recognised in terms of IFRS Accounting 15% Rail 0.03TWh (1.7%) Standards due to non-collectability, amounting to Mining 0.03TWh (0.1%) R30.1 billion for the year (2025: R23.8 billion). Of this, R14.3 billion (around 47% of the amounts not meeting 19% collectability criteria for the year) was recognised as Distributors Industrial Mining Commercial revenue on a cash basis once payment was received Residential Agricultural Rail International (2025: R11.9 billion). 54 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Enhancing financial sustainability continued At the same time as sales volumes declined, improved OPERATING COSTS TARIFF RELIEF MEASURES IMPLEMENTED FOR SMELTER CUSTOMERS generation availability has created surplus capacity Operating expenses, R billion We supply approximately 33TWh to the smelting industry annually, which represents about 20% of local of between 2–3GW. A widening mismatch between 5.7% sales, making smelters a strategically important customer segment for revenue stability, power system supply and demand presents a material risk to cost utilisation and industrial employment. recovery and asset utilisation – also posing challenges 41.4 45.2 46.3 36.4 to managing power system integrity – but also creates 28.8 33.2 31.8 36.3 31.9 In response to the economic pressures faced by the ferrochrome smelter sector and the resulting a strategic opportunity to meet emerging demand 32.1 32.3 35.1 43.2 48.1 structural decline in their electricity demand – with sustained consumption by these customers reducing in new markets and drive revenue growth that is not 33.0 to approximately 10% of normal operating levels – we implemented targeted tariff relief interventions to dependent on tariff increases. 173.7 retain this strategic industrial load, prevent job losses and support broader economic stability. 132.9 156.8 150.2 151.9 To address the declining sales trend, we are In January 2026, we secured NERSA approval for a temporary 35% reduction in the NPA tariffs of two implementing a structured portfolio of short-, smelter customers. This was aimed at providing short‑term relief at a revised tariff of 87.74c/kWh for medium- and long-term initiatives, including: 2022 2023 2024 2025 2026 12 months to enable restoration of operations. However, this intervention was insufficient to sustain full • Smelter tariff interventions discussed above to Primary energy costs Employee benefit expense production, prompting further engagement with the affected smelters on a commercially viable tariff stabilise and recover approximately 13TWh in Depreciation and amortisation Other operating expenses structure. ferrochrome demand and a further 2.7TWh in CAGR ferroalloy and iron and steel demand per year In April 2026, we concluded negotiations for a 62c/kWh tariff with Samancor Chrome for five years PRIMARY ENERGY • Flexible load activation to absorb surplus capacity, and Glencore‑Merafe Chrome for three years, subject to NERSA approval. The amended agreements Primary energy costs increased by 1.1% to including a Bitcoin mining pilot. Capacity is expected provided a medium‑term solution as part of a broader NPA framework for energy‑intensive industries R151.9 billion (2025: R150.2 billion). However, the to scale up to 1.3GW by FY2028, equivalent to to be applied on a case‑by‑case basis. Following a public consultation process, NERSA approved the prior year included once-off favourable adjustments approximately 8TWh demand per year amended NPA framework, including the interim concessionary pricing arrangement for these ferrochrome of R14.2 billion due to the resolution of the fuel levy smelters to be applied from 1 June 2026. • Structural demand growth through data centres, dispute with SARS, while only R1 billion in fuel levy with a secured pipeline of projects which will see refunds were recognised in FY2026. Excluding the From a financial perspective, the intervention was designed to stabilise and recover electricity sales 2GW connected by FY2029, with demand growing impact thereof, primary energy costs have decreased volumes, with retained demand expected to reach approximately 13TWh per year. This supports liquidity to around 13TWh per year by FY2031 by 7% year-on-year. by improving revenue certainty and by optimising utilisation of coal‑fired generation capacity, thereby • Developing South Africa’s role as a regional avoiding underutilisation of assets and under recovery of fixed costs, as well as mitigating contractual electricity hub and facilitating export sales into Production was 6.3% lower than the prior year, in exposure to take‑or‑pay clauses in existing coal supply agreements. By supporting base-load demand, this regional markets, supported by cross-border response to the lower demand. Cost efficiencies were intervention also enhances overall power system utilisation and contributes to financial stability without power supply agreements, expanded participation achieved through optimisation of the production requiring higher tariffs across our customer base. in the Southern African Power Pool, as well mix and reduced reliance on peaking generation as the development of regional transmission sources. Given the lower system demand, together Beyond supporting Eskom’s financial sustainability, the intervention is intended to protect employment and interconnections to unlock new international sales with Eskom’s improved generation availability and industrial capability within the ferrochrome value chain, given the sector’s strategic importance to South opportunities increased renewable energy production from IPPs, Africa’s mining, beneficiation and export industries. We acknowledge the sensitivity regarding electricity • Other measures to retain customers in a liberalising generation dispatch was increasingly focused on the affordability and emphasise that the approved NPA framework balances industrial support with regulatory market, including wheeling revenue optimisation, lowest-cost available resources, although this gave oversight, ensuring that relief measures remain transparent and time‑bound, without imposing additional renewable energy power purchase agreements rise to periods where renewable energy output costs on other customers. The revenue variance associated with the interim concessionary tariff is through Eskom Green, charging of electric vehicles exceeded system requirements and certain renewable ring-fenced and cannot be recovered through future tariff mechanisms or NERSA’s regulatory clearing as well as new products and services IPPs had to be curtailed to maintain system balance account (RCA) process. and security. Based on these initiatives, sales volumes are expected Looking ahead, we will continue to apply a structured, time-bound, case‑by‑case approach to similar to stabilise over the medium term, supported by interventions for energy‑intensive customers, while avoiding subsidisation by other customers and improved generation availability, development of maintaining an appropriate balance between competitiveness, financial sustainability and regulatory new sales opportunities, retention of firm industrial compliance. demand and expansion of export sales. The longer- term demand outlook continues to be reviewed to reflect evolving market conditions, embedded For further information, refer to www.eskom.co.za/eskom-notes-nersa-approval-of-interim-concessionary-pricing- generation trends and developments affecting major framework-for-ferrochrome-smelters/ energy-intensive customers. 55 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Enhancing financial sustainability continued Improved performance at coal-fired power stations Coal generation costs, excluding environmental levies, % and higher production from Koeberg Nuclear Power grew by 0.5% despite a 7.8% decline in production Unit cost, R/MWh 2026 2025 change The increase in incentives is directly linked to Station – following the return to service of both from coal-fired stations. This was primarily due to the measurable performance gains achieved units after long-term outages – enabled a substantial a 10.1% increase in the average coal purchase price, Coal 591 546 8 during the year. These incentive schemes are reduction in production from expensive OCGT driven by contractual price escalations linked to the Nuclear 109 107 2 structured to reward employees for delivering sources. A combined R7.1 billion was incurred to input costs of mines, as well as higher coal take-or- Eskom-owned OCGTs1 5 935 6 084 2 sustained operational improvements and produce 1.1TWh from Eskom-owned and IPP OCGTs, pay obligations arising from lower demand and the IPPs2 2 304 2 357 2 remain self-funded from the performance before fuel levy adjustments (2025: R17.7 billion to resultant reduction in coal-fired generation. These IPP OCGTs3 6 048 5 870 3 gains and operational cash flows they produce 2.8TWh). cost pressures were partially offset by favourable Renewable IPPs2 2 175 2 189 1 generate. Strict gatekeepers and qualification coal efficiency and coal mix variances, supported by Other IPP programmes2 3 242 2 446 33 criteria are in place to ensure that payouts are Spend on international purchases also reduced due a more efficient coal burn rate and optimisation of International purchases2 897 866 4 only triggered where performance thresholds to a decline in imports, driven by supply constraints production to lowest-cost stations. 1. The unit cost of OCGTs is calculated based on the gross fuel are met, protecting the group’s financial at Hidroelèctrica de Cahora Bassa (HCB) due to cost (excluding the diesel levy rebates) for comparability sustainability. drought conditions, as well as outages on the high- purposes. The unit cost excludes storage and demurrage costs voltage transmission line connecting the station. but includes environmental levies. 2. The unit cost of IPPs and international purchases is based on the full cost of operation, including operating and capacity charges, whereas the unit cost of Eskom-owned generation GR For further detail on the STI scheme, refer to Primary energy production breakdown, % “Ensuring fair remuneration” in the governance and 19.6TWh 4.1TWh is based only on the primary energy cost. Given that IPP 4.1TWh (9%) (2%) 7.6TWh and international purchases are treated as a variable cost in remuneration report 19.6TWh (2%) 19.4TWh (3%) (9%) 0.8TWh (<1%) Eskom’s accounts, this is considered appropriate. (9%) 3. The unit cost is calculated on the net amount spent on energy, 0.8TWh (<1%) 11.6TWh 2.2TWh (1%) (6%) excluding operating and capacity charges, and after the lease Furthermore, we completed the process to address 11.6TWh 8.4TWh (6%) (4%) accounting adjustment, for better comparability to the cost of income differentials in March 2025, to ensure fairness 2026 Eskom-owned OCGTs. in accordance with our commitment to organised 2026 2025 EMPLOYEE BENEFIT EXPENSE labour, which led to increases for certain employees to close historical pay gaps. The exercise commenced Employee costs increased by 11.4% to R48.1 billion 172.5TWh in FY2018, in response to income disparities identified 172.5TWh (83%) (2025: R43.2 billion), driven by an average 185.1TWh at the time by the then Department of Labour. (83%) (83%) remuneration adjustment of 7% granted to Coal and other generation Nuclear generation employees, combined with a 3% growth in headcount. In compliance with the conditions attached to the Coal and other generation Nuclear generation Eskom OCGTs IPPs Electricity Coal imports and other generation Nuclear generation Eskom Debt Relief Act, 2023 as amended, decisions Eskom OCGTs IPPs Electricity imports Eskom OCGTs IPPs Electricity imports Production bonuses of R1.6 billion were awarded, mainly around remuneration and benefits consider our to employees in the Generation Division, linked to financial sustainability and are based on a holistic R7.3 billion (4%) improved operational performance (2025: R1.2 billion). Primary energy cost breakdown (before fuel levy refunds), %4.1TWh R6.6 billion (4%) view of operational and financial performance, not 19.6TWh (2%) Eskom’s STI scheme was continued in FY2026, with a (9%) just employee costs. We will continue to optimise R6.8 billion (4%) R7.3 billion (4%) total obligation (including a mandatory 13.5% pension R3.7 billion (2%) 0.8TWh (<1%) R6.6 billion (4%) our cost base by driving higher productivity across contribution) of R5.1 billion recognised at year end 11.6TWh the workforce and delivering improved organisational (6%) R45.6 billion (2025: R4.2 billion). (28%) 2025 performance, while aligning rewards with operational 2026R45.6 billion R91.0 billion and financial outcomes. R45.2 billion (55%) 2026 (28%) 2025 (30%) R91.5 billion R91.0 billion (60%) R13.3 billion (8%) (55%) 172.5TWh (83%) R0.6 billion (<1%) R5.0 billion (3%) R13.3 billion (8%) Coal and other generation Nuclear generation R0.8 billion (1%) Coal and other generation R0.6 generation Nuclear billion (<1%) Eskom OCGTs IPPs Electricity imports Coal and other generation Nuclear generation Eskom OCGTs IPPs Electricity Coal generationEnvironmental imports and other Nuclear levies generation Eskom OCGTs IPPs Electricity imports Eskom OCGTs IPPs Electricity imports Environmental levies 56 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Enhancing financial sustainability continued DEPRECIATION AND AMORTISATION Repairs and maintenance spend Finance costs reduced due to a decline in debt securities our weighted average cost of capital. Therefore, Depreciation and amortisation expense increased by and borrowings as well as a lower average cost of the migration towards a more cost-reflective tariff 14.4% to R36.3 billion, largely due to the commissioning R4.8 billion borrowing, resulting from favourable interest rate path, while considering customer affordability and of additional generating units through the new build movements across global markets and strengthening of safeguarding vulnerable sectors, has been a key programme (2025: R31.8 billion). Kusile Unit 5 achieved R1.9 billion the Rand. This was partially offset by lower capitalisation priority for turning around financial performance. commercial operation on 30 June 2024 and was of borrowing costs to property, plant and equipment, therefore in operation for the full year, as opposed to a 2026 with the commissioning of new build units reducing TARIFF PATH portion of FY2025. Kusile Unit 6 achieved commercial assets under construction and the portion of finance NERSA announced the allowable revenue operation on 29 September 2025. costs eligible for capitalisation. Finance income grew due determination under the sixth multi-year price R23.9 billion to our strengthened cash and investment balances. determination (MYPD 6) in January 2025, resulting in OTHER OPERATING EXPENSES approved standard tariff increases of 12.74%, 5.36% Other operating expenses increased by 2.5% to Average cost of debt 9.98% (2025: 10.36%) and 6.19% for FY2026 to FY2028. This outcome was Generation Transmission network Distribution network R46.3 billion in part due to inflationary pressures Average investment return 7.31% (2025: 8.37%) significantly lower than our application, primarily due R5.3 billion (2025: R45.2 billion, restated). Furthermore, a to data input errors in NERSA’s calculations, as well as R1 billion net loss was recognised in respect of payment misapplication of the MYPD methodology and non- arrangements implemented for municipalities in Given our improved financial results, R1 billion has compliance with a previous court ruling relating to the R1.8 billion FY2026 – this loss was raised upon derecognition of been recognised in fees payable to the National valuation of the regulatory asset base (RAB). the trade receivables and recognition of the related 2025 Revenue Fund in terms of the Guarantee Framework loan receivables. Agreement (GFA), based on meeting financial covenant thresholds outlined in the GFA (2025: R1 MYPD 6 allowable revenue was approved Repairs and maintenance spend increased to R23.2 billion billion, restated). These fees are recognised in finance based on a gradual increase in our return R30.5 billion to address unplanned generation costs related to debt securities and borrowings. In on assets to 4%, 5% and 6% for FY2026 to plant losses as well as planned outages through the Generation Transmission network Distribution network April 2026, the Minister of Finance approved the FY2028, to minimise the impact to customers Generation Reliability and Sustainability Plan (2025: deferral of the payment of these fees to March 2027. over time. However, these returns remain R30.3 billion). While planned maintenance on both below our cost of capital of almost 11% the transmission and distribution network remained  efer to notes 40 and 41 in the financial statements AFS R (pre-tax real). stable, the distribution network recorded lower NET FINANCE COST for further detail on finance income and finance cost unplanned maintenance for the year. Reconciliation We lodged a review application with the High Court of net finance cost, Restated % ADDRESSING THE TARIFF PATH AND in June 2025 to challenge NERSA’s decision. In August R billion 2026 2025 change TARIFF STRUCTURES 2025, we concluded a settlement agreement with Debt securities and The inadequate tariff path has been an ongoing NERSA, providing for an additional R54 billion in 31.1 33.8 8 borrowings challenge since 2006; it is one of the main reasons allowable revenue to correct for NERSA’s calculation Derivatives held for for our historic financial constraints, together with errors. However, the settlement was challenged in 5.4 4.7 15 risk management operational challenges and the reliance on debt to court by AfriForum and the Minerals Council South Provisions 4.3 4.0 7 fund our new build programme – which in itself was Africa. In December 2025, the High Court declined to Other1 4.1 4.5 10 a result of the inadequate tariff, because insufficient make the settlement between Eskom and NERSA an Gross finance cost 44.9 47.0 4 operating cash flows had been generated to fund order of court and directed NERSA to redetermine Cost of borrowings capital expenditure without significant borrowings. Eskom’s RAB and allowable revenue after following (4.6) (6.1) 26 another public consultation process. capitalised to assets The allowable revenue determined by NERSA must Finance cost 40.3 40.9 1 be sufficient to cover the prudent and efficient costs Finance income (8.4) (6.8) 23 that we incur to supply electricity to customers, Net finance cost 34.1 6 while also providing a fair return on assets to cover 31.9 1. Includes finance costs on employee benefit obligations, lease liabilities as well as trade and other payables. 57 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Enhancing financial sustainability continued Following this process, NERSA approved additional allowable revenue of R54.7 billion in February 2026, to be Progress on the RCA applications for FY2022 to FY2025 is summarised below. recovered on a phased basis as follows: Eskom application NERSA decision Progress NERSA’s NERSA’s RCA decision for FY2025 (MYPD 5) Year original revenue decision Adjustment revised revenue decision R8.9 billion in favour Awaiting decision The RCA application is in favour of customers, mainly caused by R409.5 billion R12 billion R421.5 billion of customers underspend on IPPs and international purchases as well as lower 2027 (5.36% tariff increase) (additional 3.4%) (8.76% tariff increase) (submitted in depreciation, partially offset by overspend on operating March 2026) expenses and other primary energy costs. NERSA published the R436.9 billion R23 billion R459.9 billion application for public consultation in June 2026, with the public 2028 (6.19% tariff increase) (additional 2.64%) (8.83% tariff increase) hearing scheduled for September 2026 RCA decision for FY2024 (MYPD 5) The phased implementation limits the impact to single improving affordability, transparency and predictability R15.5 billion in favour Awaiting decision The RCA application is in favour of Eskom due to overspend on digit increases in FY2027 and FY2028 and avoids any in tariff setting. We will actively participate in the of Eskom (submitted operating expenses and primary energy costs, partially offset by retrospective adjustment for FY2026, in line with public consultation process on the revised EPP in October 2025) underspend on IPPs, lower depreciation as well as revenue the court ruling. The remaining R19.7 billion will be and the Electricity Sector Market Transformation variances in favour of consumers. NERSA published the recovered beyond the MYPD 6 period, subject to Position Paper, which were published for comment application for public consultation in December 2025. The public hearing planned for February 2026 did not take place due future determination by NERSA. in August 2026, as the outcome will have significant to limited public interest. Eskom is awaiting NERSA’s decision implications for the long-term tariff path and the In June 2026, AfriForum launched another urgent transformation of the sector. We continue to engage RCA decision for FY2023 (MYPD 5) court application to review and set aside NERSA’s with NERSA, DEE and other stakeholders to support latest decision, citing NERSA’s failure to provide R9 million in favour of R232 million in favour NERSA published its reasons for decision in May 2025, although the development of an appropriate long-term Eskom (submitted in of customers NERSA has yet to determine the timing of the RCA liquidation. the reasons for the decision within 90 days of the pricing framework that balances Eskom’s financial January 2024) (approved in In its reasons for decision, NERSA disallowed all outage and decision, and further alleging that the decision is sustainability with customer affordability. March 2025) technical plan capital expenditure in Generation’s assets under irrational and unlawful. The application has no construction and disallowed the full international arrear debt retrospective effect on the validity of the tariffs for RCA DECISIONS RELATING TO PREVIOUS applied for FY2026 and FY2027. We filed a motion to oppose this FINANCIAL YEARS review; NERSA issued its reasons for decision in July As discussed in previous reports, recent RCA RCA decision for FY2022 (MYPD 4) 2026 and the matter was struck off the urgent court decisions by NERSA have not aligned to the principles R23.9 billion in favour R8.1 billion in favour NERSA published its reasons for decision in March 2025, roll but may proceed on a non-urgent basis. of the MYPD methodology. Eskom has lodged several of Eskom (submitted of Eskom (approved although NERSA has yet to determine the timing of the RCA review applications with the courts to challenge these in April 2023) in July 2024) liquidation. In its reasons for decision, NERSA disallowed all of The absence of a published tariff outlook beyond the determinations. Generation’s maintenance cost variance, arguing this to be three-year MYPD 6 period limits the ability to plan inefficient due to a lack of improvement in plant reliability, low over an extended horizon. This continues to pose a The legal processes for the review applications relating energy availability and high unplanned maintenance. For similar risk to financial sustainability and the development of to RCA decisions from FY2015 to FY2021 have been reasons, NERSA disallowed most of the variance arising from appropriate financial strategies – not just for Eskom, underway for several years. In May 2025, NERSA Eskom’s power station start-up fuel costs and OCGT costs but also for our customers. agreed to a settlement amount of R40.2 billion to finalise these review applications, which was Although a formal long-term price path has not yet subsequently endorsed through a court order. NERSA been published, significant policy and regulatory will determine the recovery of the settlement amount reforms are underway. The Electricity Regulation through its governance processes, but it is only Amendment Act, 2024 is driving the transition expected from FY2029 at the earliest. In our RCA towards a competitive electricity market, supported submission for FY2025, we proposed the recovery of by the development of new pricing frameworks and this amount in a phased manner that minimises the market mechanisms. In parallel, the Department impact to customers. This proposal will also form part of Electricity and Energy (DEE) has revised South of the public consultation process for the FY2025 Africa’s Electricity Pricing Policy (EPP), aimed at RCA application. 58 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Enhancing financial sustainability continued RESTRUCTURING OF TARIFFS The main contributors to FY2026 performance to FY2030. To support this, our FY2027 Corporate Historically, tariff structures have not fully reflected For tariff analysis and calculation tools, and to access were additional revenue from higher international Plan incorporates base reductions in operating the schedule of standard prices and tariff rates, sales and lower energy losses relative to the financial expenditure of R5 billion per year, which are already the underlying cost drivers of electricity supply, please visit https://www.eskom.co.za/distribution/ particularly the allocation between fixed and variable plan baseline, as well as savings from lower usage of embedded in the budget to drive immediate cost tariffs-and-charges/ costs. However, significant progress has been made coal, OCGTs and IPPs. These were underpinned by discipline. Beyond this, CORE is collaborating in recent years in modernising tariffs to align with our efficiencies as well as optimisation of the production with business units to identify and deliver further evolving operating model, the unbundling of Eskom Going forward, our proposed structural reforms to mix due to improved generation performance and cost optimisation and revenue opportunities and broader electricity sector reforms. the tariff intend to address: lower overall demand. CORE initiatives contributed to support the group in achieving a sustainable • Further advancement towards unbundled tariffs, meaningfully to Eskom’s improved financial EBITDA margin over the next five years, in line with Following the submission of a revised retail tariff plan reflecting the underlying cost components of performance for the year and demonstrate the investment-grade expectations. Given the strong to NERSA in September 2024, the regulator approved generation, transmission and distribution, which continued conversion of operational and commercial delivery by CORE in FY2026, the phasing of these the restructuring of Eskom’s tariffs in February would also support the unbundling process and improvements into measurable financial benefits. targets is being reassessed to maintain a sustainable 2025, with phased implementation over three years market reforms pipeline of interventions over the next five years. commencing from 1 April 2025. The revised retail The credibility and sustainability of reported results • Introducing foundational wholesale pricing tariff plan is designed to improve cost reflectivity remained a key focus area during the year. We have The programme will continue to focus on primary arrangements, including the development of an by aligning tariffs more closely with the generation, implemented corrective actions to address prior year energy cost optimisation, procurement and supply NTCSA tariff, as part of the transition towards transmission and distribution component costs of audit findings relating to the financial plan baselines, chain efficiencies, operational improvements across a competitive electricity market structure electricity supply, and by rebalancing tariffs between measurement consistency and insufficient audit the value chain, digital transformation, capital fixed and variable charges. • Enhanced price signalling mechanisms, including evidence. These included strengthening financial rules productivity and revenue growth opportunities, market-aligned and time-of-use pricing adjustments, and obtaining independent external verification of including the reduction of energy losses and A key element is the phased implementation of the to better reflect system conditions and incentivise reported savings and revenue enhancements. These strengthening of sales. These initiatives are expected generation capacity charge (GCC), which is intended more efficient consumption patterns measures are aimed at ensuring that CORE results to support EBITDA and operating cash flows, both to enhance the recovery of fixed costs associated are credible, repeatable and linked to sustainable directly and indirectly, over the medium to long term. with maintaining a reliable and available generation These reforms will support the efficient integration performance improvements, rather than once-off gains. fleet. The GCC was approved at a reduced level of of alternative energy sources, enable more effective Through CORE, we are committed to 20% of the amount Eskom applied for in FY2026 demand-side management and position the group CORE remains a central lever to delivering on our institutionalising cost discipline as a permanent way of and 30% of the amount applied for in FY2027 to operate within a more competitive and dynamic financial strategy and supports the achievement of operating. Targets are being integrated into divisional and FY2028. The result of this decision is that the electricity supply industry, while maintaining the Eskom’s long-term financial objectives. At inception, performance commitments to ensure accountability recovery of fixed costs incurred by Eskom – which is necessary support for vulnerable customer segments. the programme targeted cumulative savings and from executive leadership through to the operational necessary to provide energy security for all customers revenue contributions of R112 billion from FY2026 teams responsible for delivery. DRIVING EFFICIENCIES – continues to be recovered largely through the A significant focus area of our financial strategy is to variable energy charge. strengthen financial performance through disciplined Similarly, service and administration charges for cost optimisation and improved revenue performance. residential tariffs (Homepower and Homeflex) continue This is being advanced through the Cost Optimisation to be phased in over a three-year period, starting at and Revenue Enhancement (CORE) programme, one-third for FY2026 and increasing to two-thirds in which supports the identification, measurement FY2027. and delivery of initiatives that improve EBITDA and operating cash flows. The phased implementation of the GCC and service and administration charges reflect a shift towards The CORE programme reported strong the recovery of fixed costs, with a corresponding performance in FY2026, recording savings and reduction in variable energy charges to maintain revenue contributions of R22.4 billion, exceeding the the overall approved tariff increase. We have also R21 billion stretch target. These contributions were introduced Easy Electricity purchase options to delivered through a portfolio of high-impact initiatives, improve accessibility of prepaid electricity products supported by stronger governance and improved and customer understanding of tariff structures. initiative measurement disciplines. 59 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Enhancing financial sustainability continued OPTIMISING ESKOM’S BALANCE SHEET A reconciliation of the movements in the loan from The net debt balance at year end was comprised of SOLVENCY RATIOS the shareholder is shown below. the following. Target Target Target Target Actual Actual Actual Movements in loan from the shareholder R billion Net debt, R billion 2026 2025 % change Measure and unit 2029 2027 2026 met? 2026 2025 2024 Balance at 31 March 2025 56.1 Debt securities and FFO as % of gross debt, % 28.91 26.55 21.10 23.79 21.82 10.74 Conversion of prior year loan to equity (56.0) borrowings 356.2 372.7 4 FFO (after net interest) as % of Government debt relief support received Loan from the 24.11 21.24 15.61 18.71 15.42 3.94 gross debt, % during the year 80.0 shareholder1 80.1 56.1 43 Cash interest cover, ratioSC 5.51 3.85 2.88 3.80 2.76 1.18 Interest recognised 0.9 Lease liabilities 6.9 7.7 11 Debt service cover, ratioSC, 1 1.21 1.06 1.69 1.55 1.11 0.46 Interest paid (0.9) Cash and cash Gross debt/EBITDA, ratio 3.97 4.31 5.24 4.60 4.96 11.58 equivalents2 (124.9) (63.8) 96 Balance at 31 March 2026 80.1 Payments made in Debt/equity (including long-term 0.60 0.68 1.00 0.93 1.46 1.99 advance2 (0.3) (0.3) – provisions), ratio The interest rate on the loan from the shareholder Net derivatives held 1. The calculation for FY2026 includes the once-off conversion of a R20.1 billion China Development Bank (CDB) facility from USD to was 6.9% (2025: 7.9%). for risk management 2 (4.7) (13.8) 66 CNY. The debt service cover ratio excluding the CDB conversion amounted to 2.29. Our focus remains on ensuring continued adherence Net debt 313.3 358.7 13 to the conditions attached to the debt relief support, Our solvency ratios have improved significantly Debt relief support, R billion 1. A total of R64 billion was received during FY2025, of which to enable conversion of the shareholder loan to R8 billion had been approved for conversion to equity by compared to the prior year, largely due to the 230 equity. This is critical to realise the full benefit of the 31 March 2025. The remainder was approved for conversion in improvement in EBITDA performance and operating June 2025. A total of R80 billion was received in FY2026, with support and deleverage our balance sheet, thereby cash flows, as well as the reduction in external debt 140 approval for conversion to equity awaited at 31 March 2026. reducing debt service costs over time. supported by Government’s debt relief. Strengthening Approval was subsequently granted in August 2026. the balance sheet over time is a key component of 2. In the table above, assets are reflected as negative amounts. By 31 March 2026, we had received a total of our financial strategy to ensure Eskom’s long-term 76 64 80 10 R220 billion in support since implementation of The conditions of the Eskom Debt Relief Act allow financial sustainability. Government’s debt relief package. The final R10 billion Eskom to continue to draw down on existing facilities 2024 2025 2026 2029 to be received in FY2029 will assist with the in place at 31 March 2023, with any additional Government’s debt relief support has been a Converted to equity redemption of the EL28 domestic bond in May 2028. financing beyond this being subject to approval from key enabler for deleveraging our balance sheet, Received and approved for conversion by providing certainty of meeting debt servicing Amount to be received the Minister of Finance. To effectively deleverage our DEBT SECURITIES AND BORROWINGS balance sheet, any incremental borrowings will need obligations, so that operating cash flows can be made Our gross debt securities and borrowings balance more readily available for operational and capital We received the R80 billion support for FY2026 in to be restricted based on the strength of Eskom’s (excluding the loan from the shareholder) has financial position, without placing reliance on further expenditure requirements. As the debt relief package March 2026. Given that it would only be assessed for decreased to R356.2 billion (2025: R372.7 billion), nears completion, with R10 billion due to be received compliance with the strategic conditions attached Government guarantees. mainly due to debt servicing activities aided by in FY2029, sustaining these gains will increasingly to the support in early FY2027, it was recognised as Government support, coupled with the restriction Total drawdowns from existing facilities with depend on maintaining strong operational and a liability in the financial statements at year end. In on new borrowings under the debt relief conditions. development financing institutions (DFIs) amounted financial performance, generating improved operating August 2026, the Minister of Finance approved the The strengthening of the Rand also had a favourable to R1.4 billion for the year (2025: R8.7 billion). cash flows and allocating capital prudently. conversion of this amount to equity based on Eskom’s impact on the balance of foreign-denominated Furthermore, a notable achievement for the year was continued compliance with the conditions, further borrowings. the conversion of an existing R20.1 billion CDB facility GOVERNMENT SUPPORT strengthening the group’s capital structure. The Eskom Debt Relief Amendment Act, 2025 was from USD to CNY, which also moved the debt from a Year-end EUR/ZAR 19.58 (2025: 19.81) floating interest rate to a lower fixed interest rate. implemented from September 2025 to amend the phasing of the debt relief support and reduce the total Year-end USD/ZAR 16.94 (2025: 18.31) debt relief package from the R254 billion originally envisaged to R230 billion, based on our improved financial position. The R70 billion support originally planned for FY2027 was withdrawn, while the support for FY2026 increased from R40 billion to R80 billion to assist with the settlement of the ES26 bond on 2 April 2026. 60 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Enhancing financial sustainability continued A reconciliation of the movements in gross debt securities and borrowings is shown below. Improving operating cash flows to fund our debt servicing requirements on a standalone basis remains a priority. Net operating cash flows increased to R96.6 billion (2025: R85.9 billion), supported by improved EBITDA Movements in gross debt securities and borrowings R billion performance. Balance at 31 March 2025 372.7 Cash outflows to settle capital and interest obligations (excluding the conversion of the CDB facility) amounted Debt raised1 21.5 to R46.7 billion for the year (2025: R79.8 billion). Due to the timing of the debt relief support, we settled these Debt repaid1 (36.8) obligations from available liquidity as they became due during the year. We received the R80 billion Government Net fair value and foreign exchange movements (8.8) support in March 2026, which assisted with the settlement of the ES26 bond on 2 April 2026, representing an Other2 7.6 immediate outflow of liquidity in FY2027. Balance at 31 March 2026 356.2 Projected debt maturity profile (net of swaps and excluding future borrowings) at 31 March 2026, R billion 1. Includes conversion of the R20.1 billion CDB facility from USD to CNY, which is reflected on a gross basis in terms of IFRS Accounting Standards. Excluding the conversion, debt raised through drawdowns from existing DFI facilities amounted to R1.4 billion, while debt 90 repaid amounted to R16.8 billion. 80 2. Mainly comprises interest accruals. 70 Over the next five years, we are targeting a drawdown programme of R13.1 billion from existing committed DFI 60 and export credit agency (ECA) facilities linked to ongoing capital projects, the execution of which influences the 50 phasing of the drawdowns. Additionally, should external funding be required, we are considering raising around 40 R25 billion in incremental debt annually from FY2028 onwards. 30 20 Borrowing programme, R billion 2027 2028 2029 2030 2031 10 Committed facilities: DFIs and ECAs 3.6 3.3 2.7 2.2 1.3 0 Aspirational incremental funding – 25.0 25.0 25.0 – 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047-2054 Government debt relief support – – 10.0 – – Capital Interest Total 3.6 28.3 37.7 27.2 1.3 Debt repayments of R203.9 billion and interest payments of R86 billion are due over the next five years, based on the existing debt book. Debt service outflows (capital and interest) of R85 billion are expected in FY2027 alone, with R38 billion linked to the redemption of the ES26 domestic bond in April 2026. The sizeable debt servicing These incremental borrowings will be used to fund and clean energy projects, comprising R4.3 billion obligations in FY2029 are linked to the redemption of the EL28 domestic bond in May 2028, with another capital expenditure required for transmission network for nuclear decommissioning, R7.2 billion for coal R10 billion due in Government support towards the settlement. expansion, emission reduction and renewable energy decommissioning and R9.8 billion for clean energy generation capacity. We intend to source this funding initiatives. Based on financial modelling in the latest Corporate Plan for FY2027 to FY2031, our gross debt securities and in part through sustainability-linked bonds in domestic borrowings (including incremental debt from the borrowing programme) is expected to reduce to a more and international debt capital markets. We are In addition, the group has recognised R22.1 billion sustainable level of around R300 billion over the next five years, which will deleverage the balance sheet to a developing an ESG funding framework to support as treasury investments (2025: R2.6 billion), which debt/equity ratio of around 0.5. Following the debt relief period, Eskom still has sizeable redemption obligations the issuance of green financing and sustainability- includes R3 billion (including interest) set aside for which will have to be serviced from improved operating cash flows, which are highly dependent on an adequate linked funding instruments, with JPMorgan and Rand future nuclear decommissioning activities as directed tariff path, maintaining cost discipline and addressing the escalating arrear municipal debt challenge. Merchant Bank as arrangers. by the National Nuclear Regulator, while discussions on a permanent solution continue. The group’s cash position increased to R124.9 billion (2025: R63.8 billion), bolstered by stronger operating cash flows and the Government support received in March 2026. Of this, R21.3 billion has been earmarked for decommissioning activities 61 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Enhancing financial sustainability continued CREDIT RATINGS DISPOSAL OF SUBSIDIARIES LATEST CREDIT RATINGS Divestment of non-core assets remains part of our financial strategy, with net proceeds from any such disposals earmarked for debt and interest settlement in terms of the Eskom Debt Relief Act. Rating Standard & Poor’s Moody’s Fitch: local currency Foreign currency B+ B2 n/a In the prior year, the Board approved the disposal of the loan book of Eskom Finance Company SOC Ltd (EFC) Local currency B+ B2 B+ and its interest in Nqaba Finance 1 (RF) Ltd to African Bank Limited. The disposal agreements, concluded in Standalone CCC Caa1 CCC+ FY2025, were subject to the fulfilment of certain conditions precedent. These conditions were not fulfilled by 31 March 2026 and the disposal agreements lapsed. We are assessing the most suitable way forward in consultation Outlook Stable Stable Stable with the shareholder and National Treasury. Last rating action Upgrade Affirmed Upgrade Last action date 24 November 2025 29 May 2026 12 June 2026 AFS R  efer to note 23 in the financial statements for further information In May 2026, the Board approved the disposal of the group’s investment in Pebble Bed Modular Reactor SOC Fitch upgrades our local Ltd and its subsidiaries to the South African Nuclear Energy Corporation SOC Ltd (Necsa), subject to PFMA and Fitch affirms our local Fitch affirms our credit currency credit rating other regulatory approvals. currency credit rating with a ratings with a stable outlook from B to B+ with a stable stable outlook and upgrades based on their latest rating outlook, following the MANAGING MUNICIPAL DEBT our standalone credit rating criteria for government- upgrade of South Africa’s KEY DEBT MANAGEMENT INDICATORS AT 31 MARCH 2026 from CCC- to CCC+ related entities sovereign credit rating Target Target Target Target Actual Actual Actual Measure and unit 2029 2027 2026 met? 2026 2025 2024 Arrear debt as % of revenue, % 10.36 8.69 7.89 5.58 6.28 3.95 May Nov May May Jun 2025 2025 2026 2026 2026 Average debtors days (including municipalities, Soweto and international n/a 136.31 122.35 120.78 107.04 100.03 customers), days1 Debtors days – municipalities, average n/a 268.94 252.17 236.36 215.65 212.64 Standard & Poor's upgrades Moody's affirms our credit debtors days1 our foreign and local ratings with a stable outlook Debtors days – large power top currency credit ratings customers excluding disputes, average n/a 16.28 16.27 15.35 15.13 15.47 from B to B+ with a stable debtors days1 outlook Other large power user debtors days n/a 15.88 15.60 14.91 14.86 16.48 (<100GWh p.a.), average debtors days1 Debtors days – small power users The positive credit rating actions over the past year Despite the recent progress, Eskom’s standalone n/a 50.07 47.82 47.22 45.89 45.19 excluding Soweto, average debtors days1 reflect rating agencies’ view that our creditworthiness ratings remain several notches below investment Total payment levels, % 90.00 91.50 92.00 93.95 93.86 94.91 has strengthened on the back of improved operating grade. Sustaining these improvements will depend on performance and a stabilising financial position, maintaining operational gains, strengthening 1. Debtors days are based on amounts processed on our billing system and are shown before considering adjustments relating to non- backed by Government’s debt relief package and long-term liquidity and reducing reliance on collectability. Therefore, the amounts may not agree with those disclosed in the financial statements. No targets have been approved broader sovereign support. Rating agencies have Government support and guarantees. Critical to for FY2029, and these are therefore shown as not applicable. also cited the strong link between Eskom’s credit our long-term financial sustainability and further ratings and South Africa’s sovereign ratings. Eskom’s improvement in our credit profile are reducing AFS F or details of debtors by category, including impairment and carrying values, refer to notes 5.1.1 and 20 in the improved operational performance has contributed non-payment by municipalities and addressing other financial statements to a stronger economic outlook for South Africa, structural constraints impacting revenue, which supporting recent sovereign rating upgrades, which in continue to place financial pressure on the group. turn have reinforced Eskom’s own credit profile. 62 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Enhancing financial sustainability continued Municipalities account for 44% of our sales; Invoiced municipal debt (including interest) and consequently, poor payment levels and defaulting percentage of invoiced debt in arrears, R billion The top 10 defaulting municipalities and metros owed arrear debt of R60.7 billion at year end, which on accounts by this customer segment substantially constituted around 54% of total arrear municipal debt. affects both our revenue and overall financial sustainability. Municipal payment challenges remain 84% Municipality, R million 2026 2025 % change 24% a systemic risk for the entire electricity industry. 86% 21.4 1. Emalahleni Local Municipality, Mpumalanga 12 255 10 280 19 To address this, we have pursued a multi-pronged 85% 15.7 strategy, including negotiating payment arrangements 2. Maluti-a-Phofung Local Municipality, Free State 9 558 8 823 8 84% 12.8 with defaulting municipalities; pursuing our legal rights 3. Emfuleni Local Municipality, Gauteng 7 982 8 227 3 81% 11.1 111.6 in court and applying the Promotion of Administrative 10.7 94.6 4. Matjhabeng Local Municipality, Free State 7 332 6 433 14 Justice Act, 2000 (PAJA) process; collaborating with 74.4 58.5 5. Govan Mbeki Local Municipality, Mpumalanga 6 570 5 483 20 44.8 intergovernmental platforms to resolve the culture 6. City of Tshwane Metropolitan Municipality, Gauteng 4 144 5 655 27 of non-payment by municipalities; assisting struggling 2022 2023 2024 2025 2026 7. City of Johannesburg Metropolitan Municipality, Gauteng 3 660 4 402 17 municipalities through National Treasury’s municipal Arrear municipal debt (including interest) Current amounts 8. Lekwa Local Municipality, Mpumalanga 3 316 2 670 24 debt relief programme and, more recently, concluding CAGR 9. Ngwathe Local Municipality, Free State 2 968 2 428 22 distribution agency agreements (DAAs). We continue to collaborate with our shareholder and National 10. City of Mbombela Local Municipality, Mpumalanga 2 959 2 164 37 Municipal debt has increased by an average of 24% Treasury to implement sustainable solutions. per year from FY2022 to FY2026, far outpacing revenue growth which averaged around 10% per Regrettably, arrear municipal debt has continued year. The number of municipalities with an arrear to escalate to R111.6 billion at year end (2025: debt balance of more than R100 million has increased R94.6 billion). Despite the substantial increase, the By 31 March 2026, National Treasury had requested Eskom to write off one-third of the ring-fenced arrear debt to 76 at 31 March 2026 (2025: 75). Around 75% of position at year end was better than the balance of for 24 municipalities, totalling R4.2 billion, based on National Treasury’s assessment of compliance for the first the arrear debt is owed by municipalities and metros R130 billion assumed in our FY2026 financial plan, 12-month cycle of the programme. Of this, R547 million was accounted for in FY2025 and R3.6 billion in FY2026. in Mpumalanga (28%), the Free State (27%) and due to improved municipal capital payment levels, These amounts were written off following Eskom’s governance processes. Gauteng (20%). which improved to 89.74% (2025: 88.88%), as well as payment arrangements concluded with key metros. MUNICIPAL DEBT RELIEF WRITE-OFFS ACCOUNTED FOR BY YEAR END SUPPORTING THE MUNICIPAL DEBT RELIEF Municipal arrear debt has continued to escalate after PROGRAMME FY2025 FY2026 year end, reaching R119.9 billion by June 2026. National Treasury initiated its municipal debt relief Rand West City Amahlathi Mangaung Arrear municipal debt is estimated to increase to programme from 1 June 2023. The programme aims Beaufort West Ramotshere Moiloa Msunduzi R358 billion by FY2031, assuming capital growth can to address poor payment levels of municipalities and improve the settlement of their current accounts over Bela-Bela Ubuntu Raymond Mhlaba be restricted to lower than the assumed tariff path. time, which will ultimately lead to an improvement Cederberg Umsobomvu Siyancuma Resolving the historic arrear debt challenge, collecting the revenue owed to us and preventing future growth in Eskom’s operating cash flows. Regrettably, the Dawid Kruiper City of Matlosana Sol Plaatje in overdue amounts are critical to improving operating programme has delivered disappointing results. Kannaland City of Mbombela Ulundi cash flows and, ultimately, our financial sustainability. By 31 March 2026, 60 out of the 71 municipalities Matzikama Emfuleni participating in the programme were still failing to settle Mogale City Endumeni their current accounts as they fall due (2025: 63). Nama Khoi Makana Once a municipality has completed 12 consecutive R547 million R3 625 million months on the programme, National Treasury assesses the municipality’s compliance with the In May and June 2026, National Treasury requested Eskom to write off one-third of the arrear debt for a further conditions of the programme and, if satisfied, requests 21 municipalities, totalling R4 billion. Of these, 19 municipalities had completed their second 12-month cycle, while Eskom to write off one-third of the municipality’s ring- two municipalities received approval for their first write-off. Governance processes are underway before these fenced arrear debt balance that was outstanding at 31 write-offs will be processed in FY2027. March 2023. If complied with, the programme aims to fully write off the arrear municipal debt over a period of three years. 63 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Enhancing financial sustainability continued Regrettably, the municipal debt relief programme is Those opting for a DAA were instructed by National not achieving the expected improvement in current Treasury to provide supporting council resolutions account payment levels by most of the participating and complete the processes under section 78 of the PAJA PROCESS FOR TERMINATION OR LIMITATION OF SUPPLY TO DEFAULTING municipalities. We have issued breach notifications to Municipal Systems Act, 2000 (MSA) by September MUNICIPALITIES the non-compliant municipalities in terms of National 2026. The majority of these municipalities have The PAJA governs the exercise of administrative action by public entities. Where Eskom is considering Treasury’s conditions. We have also sought support obtained the required council resolutions. To avoid the limitation or termination of electricity supply to defaulting municipalities, such actions constitute from National Treasury to engage with municipalities delays, we are engaging with them to improve administrative decisions affecting communities at scale which require strict adherence to lawfulness, to implement remedial action or remove them from current payment levels while the section 78 process reasonableness and procedural fairness. the programme should they fail to rectify the breach. is underway. In the interim, our debt management strategy has Any such actions must be undertaken within a defined governance framework, including PAJA and the been focused on concluding DAAs with defaulting Final notices to interrupt supply were issued to Constitution, the Electricity Regulation Act, 2006 and licence conditions issued by NERSA, as well as municipalities, failing which appropriate legal action is Dr Beyers Naude, Kai !Garib and Mamusa as the Intergovernmental Relations Framework Act, 2005 that requires cooperative engagement across being pursued through the PAJA process. they did not submit viable proposals to resolve spheres of Government. their arrear debt in response to the PAJA notice. In February 2026, National Treasury issued Dr Beyers Naude and Kai !Garib submitted urgent We follow a structured process before implementing a supply limitation or interruption to affected termination letters to 13 municipalities that have court applications to suspend the interruption, while municipalities: failed to settle their accounts for 18 or more months interruption to Mamusa proceeded as planned. • Identification of default and risk assessment: Persistent non‑payment is identified and the financial, despite them participating in the municipal debt Mamusa subsequently provided a council resolution service delivery and community impacts are assessed relief programme. National Treasury extended a final supporting the DAA and the interruption was • Pre‑engagement and cooperative governance: Eskom engages municipalities and key stakeholders, opportunity for the municipalities to conclude a DAA suspended, while the court ordered Kai !Garib including National Treasury and provincial authorities, to seek resolution through payment to remain on the programme. to conclude a DAA; engagements with both arrangements or other remedial measures municipalities are ongoing. Eskom was restrained • Notice of intention: A formal notice is issued outlining the extent of arrears, the proposed action and In March 2026, we issued PAJA notice-of-intent letters from terminating supply to Dr Beyers Naude until the to these 13 municipalities, affording them the option the legal basis, inviting affected parties to make representations matter is heard in court. to conclude a DAA, failing which we would proceed • Public participation: Municipalities and affected stakeholders are afforded an opportunity to with credit control measures. These may include After year end, National Treasury issued a second respond, ensuring procedural fairness interrupting electricity supply at predetermined times round of termination letters to a further 14 • Consideration of submissions: Eskom evaluates all representations to ensure that all relevant as permitted by law or implementing prepaid supply municipalities, requiring them to obtain council factors, including the impact on essential services and vulnerable communities, are appropriately limitations. Several municipalities have committed to resolutions and complete the section 78 process considered payment arrangements or indicated an intention to by November 2026; initial engagements have • Final decision: Eskom communicates its decision with reasons, together with implementation details conclude a DAA. commenced with these municipalities. We will and any mitigating measures continue to enforce our legal rights and consider • Implementation: Where justified, supply limitation or interruption is implemented in a controlled PAJA processes on a case-by-case basis for individual manner, in line with regulatory requirements and licence conditions municipalities. • Recourse and review: Affected parties may request reasons and, where applicable, pursue judicial review of the decision We apply key safeguards in implementing PAJA processes, including favouring load limitation over full disconnection where feasible, issuing clear and documented communication throughout the process, as well as applying consistent and standardised credit control processes across municipalities. The implementation of supply disruptions through the PAJA process forms a critical component of our approach to enforcing credit discipline among municipalities. It balances constitutional obligations, which include the protection of essential services to communities, with the need to maintain Eskom’s financial sustainability. 64 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Enhancing financial sustainability continued Government has intensified its efforts to address ADDRESSING GAUTENG METRO DEBT the financial sustainability of municipalities and Of concern in recent years has been the growth in DISTRIBUTION AGENCY AGREEMENTS AND THE SECTION 78 PROCESS improve compliance. In July 2026, National Treasury arrear debt from Gauteng metros, which do not We have implemented DAAs to support municipalities facing systemic challenges that hinder their invoked section 216(2) of the Constitution and participate in the municipal debt relief programme. ability to adequately fulfil the duties of their electricity distribution licence. Under these agreements, temporarily withheld equitable share payments to We are engaging with these metros and pursuing our Eskom will assume responsibility for managing the municipal electricity function on a temporary 69 municipalities due to persistent non-compliance legal rights in court. and defined basis, with a strong focus on skills transfer and establishing a sustainable, ring-fenced with the Municipal Finance Management Act, 2003. electricity service within the municipality. Interventions include operation and maintenance of Of these, 36 are participating in the municipal debt City of Tshwane and Eskom concluded a five-year electricity infrastructure, revenue management and retail services, as well as initiatives to reduce relief programme. National Treasury highlighted payment arrangement plan which was made an energy losses and strengthen revenue collection. that ongoing failure by these municipalities to meet order of the court in November 2024. The metro statutory obligations were threatening the financial is honouring the arrangement; by year end, this has At year end, three agreements were in place with Emfuleni, Maluti-A-Phofung and Merafong sustainability of bulk service providers, including resulted in a R2.5 billion reduction in their arrear debt municipalities. As mentioned, several municipalities have since adopted council resolutions to proceed Eskom. Transfers were reinstated following National since implementation. with DAAs and are moving ahead with the required statutory processes. Treasury’s assessment of municipalities’ compliance We also reached an agreement with City of with specified conditions, including the conclusion In November 2025, the Minister of Finance announced in the Medium-Term Budget Policy Statement Johannesburg in June 2025 for a four-year payment of payment agreements with key creditors such that defaulting municipalities will transition to DAAs as an interim measure, to stabilise municipal cash arrangement, which was subsequently made an order as Eskom, where applicable. This intervention flows and improve municipal service delivery and financial discipline. National Treasury indicated that of the court in November 2025. Despite initially represents a significant step towards strengthening this interim measure does not rule out stronger interventions where failures persist. Concurrently, complying with the arrangement, the metro has since accountability and reinforcing municipal payment National Treasury will undertake longer-term structural reforms in the local government fiscal defaulted on its payment obligations. The metro discipline, supporting our collective efforts to address framework. was requested to remedy the breach by April 2026, this challenge. which they failed to do. In May 2026, Eskom issued a In terms of National Treasury circular 132 (issued in December 2025), the implementation of DAAs notice of intent to reduce, interrupt and/or terminate The continued growth in municipal arrear debt is subject to compliance with section 78 of the MSA. That mandates a municipality to formally electricity supply in terms of the PAJA process. remains a significant risk to our financial sustainability assess alternative service delivery mechanisms, based on financial, technical, legal and capacity and undermines broader Government efforts considerations. The process requires public consultation and a council resolution to appoint an By 30 June 2026, the arrear debt owing by City of to reform the electricity supply industry. It also external service provider. In addition, municipalities must engage National Treasury, provincial Johannesburg had increased to R5.1 billion, from jeopardises Eskom’s unbundling, by threatening treasuries and the Department of Cooperative Governance and Traditional Affairs to demonstrate R3.7 billion at year end. The metro requested a the financial viability of the separate Distribution that the proposed DAA will support the municipality’s compliance with the municipal debt relief deferment of its obligations under the payment company. If not addressed decisively, this will require conditions. arrangement and proposed terms to settle the an extension of the timelines for unbundling, limit R5.1 billion in August 2026, which was accepted. The section 78 process is complex and can be time-consuming, with no prescribed statutory Eskom’s ability to strengthen its standalone credit Following the release of its equitable share by timeframes, which has contributed to delays in the implementation of DAAs and limited the pace of profile and may result in ongoing reliance on National Treasury, the metro fully settled its arrear scaling this intervention. Government guarantees or Government support debt by 21 August 2026. As a result, the PAJA process beyond the debt relief period. was withdrawn. DAAs remain a critical mechanism to support municipalities in delivering sustainable local electricity services, while improving our financial sustainability through enhanced revenue collection and reduced Addressing this challenge requires a multi-stakeholder The arrear debt of City of Ekurhuleni increased energy losses. We continue to engage with National Treasury and municipalities to advance these approach. This includes enforcing compliance within to R2.6 billion by year end (2025: R0.5 billion). processes. the municipal debt relief programme, implementing In March 2026, we issued a notice of intent to reduce stronger remedial mechanisms for persistently or interrupt supply in terms of the PAJA process. defaulting municipalities and enabling the accelerated An 18-month payment arrangement was subsequently implementation of DAAs. We will continue to concluded for the outstanding balance and the PAJA support municipalities in improving service delivery process was withdrawn. and revenue collection, while actively engaging across intergovernmental platforms to drive sustainable reform of the electricity distribution industry. 65 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Abbreviations AC Audit Committee (a Board committee) FGD Flue gas desulphurisation ACI African, Coloured and Indian GCE Group Chief Executive AEL Atmospheric emissions licence GCFO Group Chief Financial Officer B-BBEE Broad-based black economic empowerment GDP Gross domestic product BESS Battery energy storage system GIS Group Investigations and Security Department BOPC Business Operations Performance Committee GSC Governance and Strategy Committee (a Board committee) (a Board committee) CAIDI Customer average interruption duration index GW Gigawatt = 1 000 megawatts (see glossary) GWh Gigawatt-hour = 1 000MWh CCMA Council for Conciliation, Mediation and HCR Human Capital and Remuneration Committee Arbitration (a Board committee) CORE Cost Optimisation and Revenue Enhancement IASB International Accounting Standards Board CSA Coal supply agreement (part of the IFRS Foundation) CSI Corporate social investment IDC Industrial Development Corporation of South Africa Ltd DAA Distribution agency agreement IFC Investment and Finance Committee DEE Department of Electricity and Energy (a Board committee) DFFE Department of Forestry, Fisheries and the IFRS ® International Financial Reporting Standards Environment INPO Institute of Nuclear Power Operations DFI Development finance institution IPP Independent power producer (see glossary) DMPR Department of Mineral and Petroleum Resources IRP Integrated Resource Plan DoA Delegation of authority ISSB International Sustainability Standards Board (part of the IFRS Foundation) DWS Department of Water and Sanitation King IV King IV Report on Corporate GovernanceTM EAF Energy availability factor (see glossary) for South Africa, 2016 EBITDA Earnings before interest, taxation, King V King V Report on Corporate GovernanceTM for depreciation and amortisation, and fair value South Africa, 2025 adjustments kℓ Kilolitre = 1 000 litres ECA Export credit agency 4 KPI Key performance indicator ERI Eskom Rotek Industries SOC Ltd kt Kiloton = 1 000 tons 66 Abbreviations ERTT Eskom Restructuring Task Team (established by the Presidency) kV Kilovolt = 1 000 volts 68 Glossary of terms Statistical tables: technical and non- ESG Environmental, social and governance kWh Kilowatt-hour = 1 000 watt-hours (see glossary) 70 technical ESP Electrostatic precipitator kWhSO Kilowatt-hour sent out 75 Plant information EUF Energy utilisation factor (see glossary) LTIR Lost-time injury rate (see glossary) 78 Customer information Exco Executive Management Committee MES Minimum Emission Standards Environmental implications of using or FFP Fabric filter plant Mℓ Megalitre = 1 million litres 79 saving electricity 80 Corporate information 66 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Abbreviations continued MOI Memorandum of incorporation SADC Southern African Development Community mSv Millisievert SAIDI System average interruption duration index (see glossary) Mt Million tons SAIFI System average interruption frequency index MVA Megavolt-ampere = 1 million volts (see glossary) MW Megawatt = 1 million watts SALGA South African Local Government Association MWh Megawatt-hour = 1 000kWh SAPP Southern African Power Pool MWhSO Megawatt-hour sent out SARS South African Revenue Service MYPD Multi-year price determination SES Social, Ethics and Sustainability Committee NECOM National Energy Crisis Committee (a Board committee) NEDCSA National Electricity Distribution Company SIU Special Investigating Unit of South Africa SOC Ltd SOC State-owned company NEMA National Environmental Management Act, 1998 SSEG Small-scale embedded generation NEMAQA National Environmental Management: Air TMPS Total measured procurement spend Quality Act, 2004 TWh Terawatt-hour = 1 000GWh NERSA National Energy Regulator of South Africa UAGS Unplanned automatic grid separations NNR National Nuclear Regulator UCLF Unplanned capability loss factor (see glossary) NPA Negotiated pricing agreement WANO World Association of Nuclear Operators NTCSA National Transmission Company South Africa SOC Ltd OCGT Open-cycle gas turbine (see glossary) OCLF Other capability loss factor (see glossary) OEM Original equipment manufacturer PCLF Planned capability loss factor (see glossary) PFMA Public Finance Management Act, 1999 PPA Power purchase agreement PRFI Public recordable fatality incident (see glossary) PV (Solar) photovoltaic RC Risk Committee (a Board committee) RCA Regulatory clearing account RE-IPP Renewable energy independent power producer RMIPPPP Risk Management Independent Power Producer Procurement Programme 67 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Glossary of terms Arrear debt as percentage of revenue Gross arrear debt written off (relating to electricity receivables only) divided by gross electricity revenue multiplied by 100 Base-load plant Largely coal-fired and nuclear power stations, designed to operate continuously Cash interest cover (ratio) Provides a view of the company’s ability to satisfy the interest burden on its borrowings by utilising cash generated from operating activities. It is calculated as net cash from operating activities divided by net interest paid (interest paid on financing activities less interest received from financing activities) Current ratio (The current portion of inventory, payments made in advance, trade and other receivables and taxation assets) divided by (the current portion of trade and other payables, payments received in advance, provisions, employee benefit obligations and taxation liabilities) Customer average interruption duration The average time it takes to restore service to a customer during an outage, measured in hours. Calculated by dividing the total duration of all customer interruptions by the total number of customer index (CAIDI) interruptions, or alternatively, SAIDI divided by SAIFI. The approved exclusion criteria (as defined in NRS 047) are not applied in the measurement Daily peak Maximum amount of energy demanded by consumers in one day Debt/equity including long-term provisions Net financial assets and liabilities plus non-current retirement benefit obligations and non-current provisions divided by total equity Debt service cover (ratio) Cash generated from operations divided by (net interest paid from financing activities plus debt securities and borrowings repaid) Decommission To remove a facility (e.g. a reactor, a unit or an entire power station) from service and either store it safely or dismantle it Demand-side management Planning, implementing and monitoring activities to encourage consumers to use electricity more efficiently, including both the timing and level of demand EBITDA margin EBITDA as a percentage of revenue (excluding revenue not recognised due to uncollectability) Electricity operating costs per kWh Electricity-related costs (primary energy costs, employee benefit costs plus net impairment loss and other operating expenses, less other income) divided by total kWh sales multiplied by 100 Electricity revenue per kWh Electricity revenue (including electricity revenue not recognised due to uncollectability) divided by total kWh sales multiplied by 100 Embedded derivative Financial instrument that causes cash flows that would otherwise be required by modifying a contract according to a specified variable such as currency Energy availability factor (EAF) Measures power station availability, taking account of both planned and unplanned energy losses under the control of plant management, as well as other non-controllable energy losses, measured as a percentage of total operational capacity Energy efficiency Programmes to reduce energy used by specific end-use devices and systems, typically without affecting services provided Energy utilisation factor (EUF) Ratio of actual electrical energy produced during a period of time divided by the total available energy capacity. It is a measure of the degree to which the available energy capacity of an electricity supply network is utilised. Available energy capacity refers to the capacity after all unavailable energy (planned and unplanned energy losses) has been taken into account, and represents the net energy capacity made available to the System Operator or national grid Fatality An incident in which or in consequence of which, any person (an employee, contractor or member of the public) dies. To be classified as a fatality it must occur at work, or arise out of or in connection with the activities of persons at work, or in connection with the use of plant or machinery. It is reported based on the date on which the incident occurred, regardless of the time intervening between the injury and/or exposure to the cause and the resulting loss of life Forced outage Shutdown of a generating unit, transmission line or other facility for emergency reasons or a condition in which generating equipment is unavailable for load due to unanticipated breakdown Free basic electricity Amount of electricity deemed sufficient to provide basic electricity services to a poor household (50kWh per month) Free funds from operations Cash generated from operations adjusted for working capital Gross debt Debt securities and borrowings plus finance lease liabilities plus the after-tax effect of provisions and employee benefit obligations Gross debt/EBITDA ratio Gross debt divided by earnings before interest, taxation, depreciation, amortisation and fair value adjustments Independent non-executive director A director who (a) is not a full-time salaried employee of the company or its subsidiary nor a shareholder representative; (b) has not been employed by the company in any executive capacity in any of the past three financial years; (c) is not a professional advisor, significant supplier or customer of the company; and (d) is not receiving remuneration contingent on the performance of the company Independent power producer (IPP) Any entity, other than Eskom, that owns or operates, in whole or in part, one or more independent power generation facilities Kilowatt-hour (kWh) Basic unit of electric energy equal to one kilowatt of power supplied to or taken from an electric circuit steadily for one hour Lead Independent Director (LID) Acts as a sounding board for the Chairman and can lead or chair Board meetings in the Chairman’s absence or when he has a conflict of interest (effectively a deputy chairperson). The LID can assist with amplifying the voice of other board members and resolving problematic board dynamics. The LID will also lead the Chairman’s performance appraisal Load Amount of electric power delivered or required on a system at any specific point Load curtailment Typically, larger industrial customers reduce their demand by a specified percentage for the duration of a power system emergency. Due to the nature of their business, these customers require two hours’ notification before they can reduce demand Load management Activities to influence the level and shape of demand for electricity so that demand conforms to the present supply situation, long-term objectives and constraints 68 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Glossary of terms continued Loadshedding Scheduled and controlled power cuts that rotate available capacity between all customers when demand is greater than supply in order to avoid blackouts. Distribution or municipal control rooms open breakers and interrupt load according to predefined schedules. Use of the term loadshedding typically includes the concept of load curtailment Lost-time injury (LTI) A work injury which arises out of and in the course of employment and which renders the injured employee or contractor unable to perform their regular/normal work on one or more full calendar days or shifts, other than the day or shift on which the injury occurred. It includes occupational diseases and fatalities Lost-time injury rate (LTIR) Proportional representation of the occurrence of lost-time injuries over 12 months per 200 000 working hours Major incident An interruption on the transmission network with a severity ≥1 system minute Maximum demand Highest demand of load within a specified period Non-technical losses Energy losses due to electricity theft through illegal connections, tampering and bypassing of electricity meters, as well as the purchase of electricity tokens from unregistered or illegal vendors. It includes meter reading and billing errors Occupational disease/illness Any confirmed disease/illness arising out of, and in the course of, an employee’s employment, that is listed in Schedule 3 of the Compensation for Occupational Injuries and Diseases (COID) Act, 1993, or any other condition as determined by an occupational health practitioner Off-peak Period of relatively low system demand Open-cycle gas turbine (OCGT) Liquid fuel turbine power station that forms part of peak-load plant and runs on kerosene or diesel. Designed to operate in periods of peak demand Other capability loss factor (OCLF) Energy losses outside of a station’s control as well as internal non-engineering constraints, measured as a percentage of total operational capacity Outage Period in which a generating unit, transmission line, or other facility is out of service Peak demand Maximum power used in a given period, traditionally between 7:00 and 10:00 as well as 18:00 to 20:00 in summer; and 6:00 to 9:00 as well as 17:00 to 19:00 in winter Peaking capacity Generating equipment normally operated only during hours of highest daily, weekly or seasonal loads Peak-load plant Gas turbines, hydroelectric or a pumped storage scheme used during periods of peak demand Planned capability loss factor (PCLF) Energy losses due to planned maintenance on power station units, whether due to full shutdowns or partial load reduction, measured as a percentage of total operational capacity Primary energy Energy from natural resources, e.g. coal, diesel, uranium, sunlight, wind and water Public recordable fatality incident (PRFI) An incident resulting in the electrocution of a member of the public by coming into contact with Eskom apparatus within the point of supply, as well as any work-related incident where an Eskom employee or contractor is responsible for the death of a member of the public. It excludes electrocution resulting from criminal activities or incidents where a member of the public is solely at fault. The electrocution of a minor as a result of criminal activity will, however, be regarded as a PRFI Pumped storage scheme A lower and an upper reservoir with a power station/pumping plant between the two. During off-peak periods the reversible pumps/turbines use electricity to pump water from the lower to the upper reservoir. During periods of peak demand, water runs back into the lower reservoir through the turbines, generating electricity Reserve margin Difference between net system capability and the system’s maximum load requirements (peak load or peak demand) Return on assets EBIT divided by the regulated asset base, which is the sum of property, plant and equipment, trade and other receivables, inventory and future fuel, less trade and other payables and deferred income Sustainability Refers to practices that can be maintained without harming the environment, society or the economy, and considers future generations. It involves finding a balance between the needs of the present and the ability of future generations to meet their own needs System average interruption duration The average duration of interruptions on the distribution network experienced by customers during a year, measured in hours. It excludes events where the approved exclusion criteria (as defined in index (SAIDI) NRS 047) have been applied System average interruption frequency The average frequency of interruptions on the distribution network experienced by customers during a year, measured in number of events. It excludes events where the approved exclusion criteria index (SAIFI) (as defined in NRS 047) have been applied System minute Global benchmark for measuring the severity of transmission network interruptions to customers. One system minute is equivalent to the loss of the entire system for one minute at annual peak. A major incident is an interruption with a severity ≥1 system minute Technical losses Naturally occurring losses that depend on the power systems used Unit capability factor (UCF) Measure of availability of a generating unit, indicating how well it is operated and maintained Unplanned capability loss factor (UCLF) Energy losses due to outages are considered unplanned when a power station unit has to be taken out of service and it is not scheduled at least four weeks in advance, measured as a percentage of total operational capacity Used nuclear fuel Nuclear fuel irradiated in and permanently removed from a nuclear reactor. Used nuclear fuel is stored on site in used fuel pools or storage casks Watt The watt is the International System of Units’ (SI) standard unit of power. It specifies the rate at which electrical energy is dissipated (energy per unit of time) Wheeling Refers to the movement of electricity between international customers through Eskom’s network, without the power being available to customers on the South African grid 69 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Technical statistics Measure and unit 2026 2025 2024 2023 2022 2021 2020 2019 2018 2017 Safety Employee lost-time injury rate (LTIR) – group, index1 0.18 RA 0.23RA 0.29RA 0.26RA 0.24RA 0.22RA 0.30 RA 0.31RA 0.24 0.39 Fatalities (employees and contractors), number 7 3 5 5 6 11 9 7 14 10 Employee fatalities, number 4 1 2 2 4 3 – 3 3 4 Contractor fatalities, number 3 2 3 3 2 8 9 4 11 6 Customer statistics Number of Eskom customers 6 785 891 7 120 090 7 172 296 7 074 672 6 969 164 6 857 029 6 716 201 6 497 372 6 258 616 5 976 557 Key Customer Delight, %2 90.5 86.8 88.1 88.4 85.0 86.2 81.5 81.7 79.5 107.0 Arrear debt as % of revenue, % 5.58 6.28 3.95 4.80 3.91 3.24 3.69 4.30 RA 2.73RA 2.42 Debtors days – municipalities, average debtors days 236.4 215.7 212.6 179.3 149.6 140.7 116.1 94.3RA 76.6RA 53.3RA Debtors days – large power top customers excluding disputes, average debtors days 15.4 15.1 15.5 14.5 14.6 15.0 14.6 13.5RA 13.9RA 15.3RA Debtors days – other large power users (<100 GWh p.a.), average debtors days 14.9 14.9 16.5 16.3 17.5 17.5 17.0 17.2RA 16.6RA 16.8 RA Debtors days – small power users (excluding Soweto), average debtors days 47.2 45.9 45.2 46.2 47.7 50.1 44.1 42.6RA 43.4RA 48.8 RA Sales and revenue Total sales, GWh3 178 032 189 723 183 311 188 401 198 281 191 852 205 635 208 319 212 190 214 121 (Decline)/growth in GWh sales, % (6.2) 3.5 (2.7) (5.0) 3.4 (6.7) (1.3) (1.8) (0.9) (0.2) Electricity revenue, R million 353 079 338 901 294 061 257 837 244 461 202 644 197 307 177 312 174 905 175 094 Growth/(decline) in revenue, % 4.2 15.2 14.0 5.5 20.6 2.7 11.3 1.4 (0.1) 8.3 Electricity output Power sent out by Eskom stations, GWh 184 966 195 702 184 576 191 307 205 688 201 400 214 968 218 939 221 936 220 166 Coal-fired stations, GWh 165 431 179 426 166 607 171 131 184 568 183 553 194 357 200 210 202 106 200 893 Nuclear power station, GWh 11 618 8 409 8 172 9 803 12 355 9 903 13 252 11 580 14 193 15 026 Pumped storage stations, GWh 4 406 4 649 4 386 4 081 4 743 4 795 5 060 4 590 4 479 3 294 Gas turbine stations, GWh 811 2 176 3 634 3 018 1 826 1 457 1 328 1 202 118 29 Hydroelectric stations, GWh 2 416 710 1 448 3 060 1 943 1 387 688 1 029 709 579 Wind energy, GWh 284 332 329 214 253 305 283 328 331 345 IPP purchases, GWh 19 596 19 365 20 183 17 957 15 973 13 526 11 958 11 344 9 584 11 529 Energy imports from SADC countries, GWh 4 090 7 570 9 150 8 654 8 500 8 812 8 568 7 355 7 731 7 418 Wheeling, GWh 3 103 2 028 2 449 2 904 2 499 2 310 2 491 2 750 2 266 2 910 Total electricity available (generated by Eskom and purchased), GWh 211 755 224 665 216 358 220 822 232 660 226 048 237 985 240 388 241 517 242 023 Consumed by pumped storage stations, GWh4 (5 762) (6 064) (5 710) (5 504) (6 434) (6 625) (6 629) (5 981) (6 031) (4 808) Total available for distribution, GWh3 205 993 218 601 210 648 215 318 226 226 219 423 231 356 234 407 235 486 237 215 Supply and demand Peak demand (all contracted generation and demand side resources), MW 31 902 33 485 33 873 34 666 35 005 34 155 34 510 35 345 35 769 34 913 Peak demand (Eskom generation only), MW 29 739 31 416 27 854 30 808 31 953 31 470 32 948 34 256 35 457 34 122 Loadshedding implemented, number of days 4 13 329RA 280 RA 65 47 46 30 0 0 1. The employee LTIR includes occupational diseases and fatalities. 2. This measure was introduced in FY2020 and is calculated on a 12-month moving average. Prior to FY2020, the comparatives are for Eskom KeyCare. 3. The difference between electricity available for distribution and electricity sold is mainly due to energy losses. 4. Used by Eskom for pumped storage facilities and synchronous condenser mode of operation. RA Reasonable assurance provided by the independent assurance provider for the respective year. Refer to pages 105 to 106 of the integrated report for the independent sustainability assurance report relating to the FY2026 figures. 70 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Technical statistics continued Measure and unit 2026 2025 2024 2023 2022 2021 2020 2019 2018 2017 Infrastructure Total Eskom power station capacity – installed, MW 53 995 53 193 52 451 52 451 51 866 51 115 49 517 48 029 48 039 46 407 Total Eskom power station capacity – nominal, MW 47 378 46 866 46 788 46 788 47 145 46 466 45 117 44 172 45 561 44 134 Total IPP power station capacity – nominal, MW 8 565 7 495 7 495 7 110 6 831 6 083 5 206 4 981 4 779 5 027 Total transmission lines, km 33 691 33 367 33 367 33 234 33 233 33 198 33 027 32 698 31 951 32 220 Total transmission transformer capacity, MVA 161 423 161 223 160 748 160 468 160 148 159 127 153 135 152 415 151 105 147 415 Total distribution lines and underground cables, km 377 564 377 814 375 760 371 979 371 625 366 388 358 757 354 935 349 643 352 492 Total distribution transformer capacity, MVA 148 241 147 387 146 927 146 073 146 131 155 623 153 814 145 097 134 632 129 168 Asset creation Generation capacity installed and commissioned, MW 799 799RA 0 RA 799RA 794RA 1 598 RA 1 588 RA 0 RA 2 387RA 1 332RA Transmission lines installed, km 270.8 RA 292.6RA 74.4RA 326.1RA 180.5RA 65.6RA 127.9RA 378.7RA 722.3RA 585.4RA Transmission transformer capacity installed and commissioned, MVA 4 000 RA 2 620 RA 23RA – RA 1 065RA 750 RA 250 RA 540 RA 2 510 RA 2 300 RA Total capital expenditure – group (excluding capitalised borrowing costs), R billion 45.0 41.1 37.0 33.9 30.2 23.9 23.4 33.9 48.0 60.0 Plant performance Energy availability factor (EAF), %1 65.16RA 60.60 RA 54.56RA 56.03RA 62.02RA 64.19RA 66.64RA 69.95RA 78.00 RA 77.30 RA Planned capability loss factor (PCLF), %1 11.55RA 12.76RA 12.04RA 10.39RA 10.23RA 12.26RA 8.92RA 10.18 RA 10.35RA 12.14RA Unplanned capability loss factor (UCLF), %1 22.88 RA 26.05RA 32.34RA 31.92 25.35 20.04 22.86 18.31 10.18 9.90 Other capability loss factor (OCLF), %1 0.41RA 0.59RA 1.06RA 1.66 2.40 3.51 1.58 1.56 1.47 0.66 Unit capability factor (UCF), %1 65.57 61.18 55.62 57.69 64.42 67.70 68.22 71.51 79.47 78.00 Generation load factor, %1 44.0 47.2 44.6 45.7 49.5 49.0 52.6 54.4 55.9 57.9 OCGT load factor, % 3.9 10.3 17.2 14.3 8.7 6.9 6.3 5.7 0.6 0.1 Unplanned automatic grid separations (UAGS trips), number1 570 699 593 736RA 697RA 527RA 594RA 517 333 444 Integrated Eskom system load factor (EUF), %1 67.6 77.8 81.8 81.5 79.8 76.3 79.0 77.8 71.6 75.0 Network performance Total system minutes lost for events <1, minutes 3.10 RA 4.37RA 3.29RA 4.71RA 2.88 RA 3.48 RA 4.36RA 3.16RA 2.09RA 3.80 RA Major incidents ≥1 minute, number 2 4RA 1 1 2 2 3 3 0 0 System average interruption frequency index (SAIFI), events2 11.72Q 11.70 11.69 11.80 12.34RA 13.22RA 14.44RA 14.87RA 18.71RA 18.87RA System average interruption duration index (SAIDI), hours2 35.09Q 34.91RA 34.88 RA 35.51RA 35.46RA 35.36RA 36.88 RA 37.99RA 38.68 RA 38.89RA Technical and other losses, GWh 23 921 25 339 23 502 23 879 24 811 25 078 23 457 23 292 21 086 21 399 Total energy losses, % 12.4 12.3 12.0 11.8 11.5 11.8 10.4 10.2 9.1 9.3 Transmission energy losses, % 2.2 2.4 2.2 2.3 2.3 2.3 2.2 2.2 2.0 2.2 Distribution energy losses, % 10.5RA 10.4RA 9.9RA 9.7RA 9.6RA 10.1RA 8.8 RA 8.5RA 7.7RA 7.6RA Primary energy Coal stock, days 94 79 80 65 76RA 82 81 67 68 74 Coal purchased, Mt 103.8 107.3 107.5 98.4 108.7 110.0 119.3 118.3 115.3 120.3 Coal burnt, Mt 96.5 106.2 99.5 102.4 110.3 104.9 108.6 113.8 115.5 113.7 Average calorific value, MJ/kg 19.76 19.89 19.62 19.42 19.64 19.82 19.08 19.24 19.81 20.05 Average ash content, % 31.00 30.96 31.79 32.13 31.39 31.24 29.65 30.98 30.92 28.62 Average sulphur content, % 0.78 0.80 0.77 0.79 0.83 0.82 0.78 0.84 0.87 0.84 Overall thermal efficiency, %3 31.20 30.39 30.71 30.56 30.05 30.61 30.65 30.99 31.22 31.20 Diesel and kerosene usage for OCGTs, Mℓ 256.6 679.1 1 129.5 937.5 580.4 458.7 426.2 385.0 37.8 10.0 1. The calculation of KPIs include all units at Medupi as well as Kusile Units 1 to 5. Units are only included one year after achieving commercial operation, therefore Kusile Unit 6 is still excluded. Kusile Unit 5 has been included since 1 July 2025. 2. SAIDI and SAIFI are reported after allowing for exclusions defined in the National Regulated Standards adopted from 1 April 2018. 3. Only power stations where all units have been in commercial operation for one year are included in the calculation. Therefore, Kusile Power Station is excluded from this KPI. RA Reasonable assurance provided by the independent assurance provider for the respective year. Refer to pages 105 to 106 of the integrated report for the independent sustainability assurance report relating to the FY2026 figures. Q Qualified by the independent assurance provider for the respective year. Refer to pages 105 to 106 of the integrated report for further detail on the qualification of the FY2026 SAIFI and SAIDI figures. 71 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Technical statistics continued Measure and unit 2026 2025 2024 2023 2022 2021 2020 2019 2018 2017 Environmental statistics Emissions Relative particulate emissions, kg/MWh sent out1, 2, 3 0.98 RA 0.64RA 0.79RA 0.70 RA 0.34RA 0.38Q 0.47RA 0.47RA 0.27RA 0.30 RA Carbon dioxide (CO2), Mt 2 184.0 RA 204.6RA 190.4RA 187.5RA 207.2RA 206.8 RA 213.2RA 220.9RA 205.5RA 211.1RA Carbon dioxide equivalent (CO2e), Mt 2 184.5 205.1 190.9 187.9 207.7 207.3 214.0 221.7 – – Sulphur dioxide (SO2), kt 2 1 420 1 591 1 431 1 449 1 671 1 604 1 721 1 853 1 802 1 766 Nitrous oxide (N2O), t 2 1 291 1 470 1 382 1 438 1 561 1 527 2 826 2 844 2 642 2 782 Nitrogen oxide (NOx ) as NO2, kt4 695 772 735 743 822 804 851 890 859 885 Methane (CH4), t 2 1 394 1 567 1 523 1 483 1 466 1 442 – – – – Particulate emissions, kt 176.32 RA 122.94RA 145.30 RA 129.32 66.65 71.35 94.92 99.87 57.13 65.13 Water Specific water consumption, ℓ/kWh sent out1 1.34RA 1.40 RA 1.43RA 1.39RA 1.45RA 1.42RA 1.42RA 1.41RA 1.30 RA 1.42RA Net raw water consumption, Mℓ 241 562 268 638 260 680 256 430 283 610 270 736 286 553 292 344 276 335 307 269 Waste Ash produced, Mt 28.00 30.24 29.27 30.20 32.90 30.84 32.04 33.23 31.65 32.61 Ash sold, Mt 2.9 4.1 2.5 2.6 2.8 3.1 2.9 2.8 2.7 2.8 Ash recycled, % 10.3 13.4 9.0 12.0 11.0 10.1 9.1 8.4 8.6 8.5 Asbestos disposed, tons 570.2 19 825.6 143.6 171.1 39.5 22 475.8 59.8 464.1 144.9 383.0 Material containing polychlorinated biphenyls thermally destroyed, tons5 n/a n/a 5.1 96.2 46.5 134.3 238.3 43.1 26.3 61.9 Nuclear Public individual radiation exposure due to effluents, mSv6 0.0014 0.0010 0.0012 0.0022 0.0010 0.0014 0.0004 0.0026 0.0012 0.0005 Low-level radioactive waste generated (steel drum), cubic metres 99.4 151.6 188.2 164.6 158.9 147.6 159.3 188.3 164.2 162.9 Low-level radioactive waste disposed of, cubic metres 99.0 296.6 415.1 348.3 98.1 117.0 98.3 99.0 118.8 108.0 Intermediate-level radioactive waste generated (concrete drum), cubic metres 18.3 29.6 43.2 18.3 34.2 31.2 22.3 20.8 20.8 11.4 Intermediate-level radioactive waste disposed of, cubic metres 215 136 168 192 88 18 38 0 0 0 Used nuclear fuel, number of elements discharged7 0 60 56 48 56 116 48 56 116 60 Used nuclear fuel, number of elements discharged, cumulative figure 2 845 2 845 2 785 2 729 2 681 2 625 2 509 2 461 2 405 2 289 Legal contraventions Environmental legal contraventions, number 67 65 68 105 65 81 59 24 30 29 Environmental legal contraventions reported as a result of significant failure of business 3 0 7 10 7 7 5 2 2 0 systems, number 8 1. The calculation of KPIs include all units at Medupi as well as Kusile Units 1 to 5. Units are only included one year after achieving commercial operation, therefore Kusile Unit 6 is still excluded. Kusile Unit 5 has been included since 1 July 2025. 2. Figures are calculated based on coal characteristics and power station design parameters using coal analysis and coal burnt tonnages. Figures include coal-fired and gas turbine power stations, as well as oil consumed during power station start-ups. 3. At power stations with unusually high particulate emission levels, the monitors often exceed their maximum limits. In instances where these ranges are exceeded, particulate emissions will be reported at the maximum of the monitor range. From February 2019, it is possible that actual emissions exceeded reported emissions based on measurements. 4. NO x reported as NO2 is calculated using average station-specific emission factors (which are measured intermittently) and tonnages of coal burnt. 5. Material containing polychlorinated biphenyls was phased out in compliance with legislation by 31 December 2023. Consequently, after FY2024, there was no such material left to be destroyed. 6. The limit set by the National Nuclear Regulator is ≤0.25mSv. 7. The gross mass of a nuclear fuel element is approximately 670kg, with Uranium mass typically between 462kg and 464kg. 8. Specific cases of environmental legal contravention incidents that are considered to be of very high significance in terms of their impact on the environment and/or on Eskom are recorded as incidents as a result of a significant failure of business systems. RA Reasonable assurance provided by the independent assurance provider for the respective year. Refer to pages 105 to 106 of the integrated report for the independent sustainability assurance report relating to the FY2026 figures. Q Qualified by the independent assurance provider for the respective year. 72 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Non-technical statistics Measure and unit 2026 2025 2024 2023 2022 2021 2020 2019 2018 2017 Finance1 Gross electricity revenue per kWh sold (Eskom company only), c/kWh 212.37 187.98 165.43 141.38 127.32 111.04 101.86 90.01 85.06 83.60 Electricity operating costs, c/kWh 138.30 128.16 137.71 120.17 98.19 89.51 79.10 71.29 62.24 65.20 EBITDA, R million 108 648 RA 98 012RA 43 410 RA 34 565RA 52 954RA 32 608 RA 36 816RA 31 417 45 359 37 532 EBITDA margin, % 30.63 28.75 14.67 13.32 21.39 15.96 18.46 17.46 25.57 21.19 Current ratio 1.03 1.02 0.98 0.89 0.90 0.95 0.82 1.00 1.03 0.85 Cash interest cover, ratio 3.80 RA 2.76RA 1.18 RA 1.29RA 1.69RA 0.85RA 0.94RA 0.94 1.22 1.73 Debt service cover, ratio2 1.55RA 1.11RA 0.46RA 0.58 RA 0.76RA 0.30 RA 0.52RA 0.47 0.87 1.37 Gross debt/EBITDA, ratio 4.60 4.96 11.58 13.92 8.54 13.98 14.43 15.73 9.74 10.84 Debt/equity (including long-term provisions), ratio 0.93 1.46 1.99 1.88 1.81 2.03 2.44 3.17 2.58 2.11 Gearing, % 48 59 67 65 64 67 71 76 72 68 Free funds from operations, R million 118 991 106 073 53 975 43 847 63 795 42 972 41 120 29 047 40 022 47 571 Free funds from operations after net interest paid, R million 93 584 74 926 19 830 11 567 31 904 6 496 2 606 (5 940) 9 147 21 148 Free funds from operations as % of gross debt, % 23.79 21.82 10.74 9.12 14.11 9.42 7.74 5.88 9.06 11.69 Building skills Headcount (including fixed-term contractors) 43 274 42 030 40 625 39 601 40 421 42 749 44 772 46 665 48 628 47 658 Learner intake – Artisans, number3 296 196 173RA 135RA 106RA 0 RA 91RA 0 1 815 2 155 Learner intake – Engineers, number3 543 362 184RA 144RA 58 RA 0 RA 16RA 10 1 241 1 480 Learner intake – Technicians, number3 326 214 184RA 105RA 51RA 0 RA 11RA 3 838 1 209 Total learner enrolment (including plant operators)3 1 293RA 952RA 806 474 335 0 118 21 726Q 3 048Q Transformation Socio-economic contribution Corporate social investment committed spend, R million 153.2RA 146.2RA 93.1RA 63.0 RA 75.1RA 67.4RA 123.8 RA 132.4 Q 192.0 RA 225.3 Corporate social investment, number of beneficiaries 1 510 540 1 203 566 272 217 438 094 785 085 802 635 1 479 395 933 139 1 116 044 841 845 Total number of electrification connections, number 4 67 578 RA 83 031RA 114 800 RA 102 590 RA 97 947RA 106 669RA 163 613RA 191 585RA 215 519 207 436 Employment equity Disabilities, number of employees 1 452 1 308 1 201 1 171 1 188 1 252 1 348 1 416 1 441 1 396 Employment equity – disability, % 3.36 3.11 2.96 2.96 2.94 2.93 3.01 3.03 2.96 2.93 Racial equity in senior management, % black employees 83.12 81.32 78.89 76.92 76.67 73.72 71.00 69.80 68.31 65.80 Gender equity in senior management, % female employees 41.82 42.58 42.52 42.01 43.33 41.99 41.73 39.85 38.20 36.58 Racial equity in professionals and middle management, % black employees 88.31 86.88 85.11 83.59 81.68 80.10 78.04 76.22 75.27 73.50 Gender equity in professionals and middle management, % female employees 44.23 43.20 42.03 40.92 39.91 38.95 38.24 37.89 37.47 35.98 1. Financial ratios impacted by restatements in the annual financial statements have been restated where applicable. 2. The calculation for FY2026 includes the once-off conversion of a R20.1 billion China Development Bank (CDB) facility from USD to CNY. The debt service cover ratio excluding the CDB conversion amounted to 2.29. 3. The definition of learners was changed from 1 April 2018, to account for learners only once at the time they sign up, and not continuously for the duration of their contract. The comparatives up to FY2024 are Eskom company figures only. The reporting boundary for FY2025 included NTCSA, to ensure comparability with the prior year when the activities of the Transmission Division formed part of the Eskom company. From FY2026, the reported value is for the Eskom group. 4. Electrification connections includes farmworker connections. RA Reasonable assurance provided by the independent assurance provider for the respective year. Refer to pages 105 to 106 of the integrated report for the independent sustainability assurance report relating to the FY2026 figures. Q Qualified by the independent assurance provider for the respective year. 73 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Non-technical statistics continued Measure and unit 2026 2025 2024 2023 2022 2021 2020 2019 2018 2017 Procurement equity Local content contracted – Eskom-wide (Eskom company only), %1 83.93RA 93.79 90.72 87.02 86.89 65.99Q 92.84 Q 91.51RA 87.16RA 73.37Q Local content contracted – new build (Eskom company only), % 95.11 75.48 97.05 73.08 57.53 56.94 88.53 81.14RA 85.59RA 85.78Q B-BBEE attributable expenditure, R billion 226.2 205.4 178.8 150.1 134.2 100.4 101.7 84.5 102.3 127.7 Black-owned expenditure, R billion 140.3 112.4 93.3 87.6 83.2 53.8 46.9 52.1 57.6 53.9 Black women-owned expenditure, R billion 43.1 25.6 19.9 14.9 16.4 19.0 15.6 18.8 20.9 19.4 Black youth-owned expenditure, R billion 14.4 11.4 10.9 8.8 9.5 5.4 4.1 3.5 3.9 2.0 Procurement from B-BBEE compliant suppliers (preferential procurement), % of total measured 94.58 RA 93.21RA 74.35 72.80 75.89 64.51 65.97 58.66 80.25 98.25 procurement spend (TMPS) Procurement from black-owned (BO) suppliers, % of TMPS 58.69 51.02 38.82 42.48 47.08 34.60 30.38 36.17 45.20 41.49 Procurement from black women-owned (BWO) suppliers, % of TMPS 18.02 11.60 8.29 7.21 9.26 12.24 10.10 13.07 16.41 14.92 Procurement from black youth-owned (BYO) suppliers, % of TMPS 6.04 5.17 4.53 4.26 5.40 3.46 2.65 2.41 3.05 1.52 Procurement spend with suppliers owned by black persons with disabilities (BPwD), % of TMPS 0.54 0.42 0.10 0.18 0.16 0.22 0.17 0.22 0.20 0.02 Procurement spend with qualifying small enterprises (QSE), % of TMPS 8.18 7.54 4.50 4.39 4.91 4.29 4.08 5.17 8.86 8.91 Procurement spend with exempted micro enterprises (EME), % of TMPS 7.23 7.03 4.65 5.86 7.88 8.07 9.77 14.01 10.21 11.24 1. Local content is measured as procurement of locally manufactured/produced goods and services as a percentage of total contracts awarded for all procurement at Eskom company level. RA Reasonable assurance provided by the independent assurance provider for the respective year. Refer to pages 105 to 106 for the independent sustainability assurance report relating to the FY2026 figures. Q Qualified by the independent assurance provider for the respective year. 74 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Plant information POWER STATION CAPACITIES at 31 March 2026 The difference between installed and nominal capacity reflects auxiliary power consumption and reduced capacity caused by the age of the plant. Number and installed capacity Total installed Total nominal Years commissioned, of generator sets capacity capacity Name of station Location first to last unit MW MW MW Base-load stations Coal-fired (15) 46 139 39 692 Arnot 1 Middelburg Sep 1971 to Aug 1975 6x370 2 220 1 750 3x200; 1x196; 2x195; Camden2, 4 Ermelo Mar 2005 to Jun 2008 1 561 1 481 1x190; 1x185 Duvha 3 Emalahleni Aug 1980 to Feb 1984 5x600 3 000 2 875 Grootvlei2, 4 Balfour Apr 2008 to Mar 2011 4x200; 2x190 1 180 570 3x200; 1x195; 1x191; Hendrina4 Middelburg May 1970 to Dec 1976 1 666 1 041 4x170 Kendal 5 Emalahleni Oct 1988 to Dec 1992 6x686 4 116 3 840 Komati2, 6 Middelburg Mar 2009 to Oct 2013 4x100; 4x125; 1x90 990 – Kriel Bethal May 1976 to Mar 1979 3x430; 3x500 2 790 2 640 Kusile5 Ogies Aug 2017 to Sep 2025 6x799 4 794 4 320 Lethabo Vereeniging Dec 1985 to Dec 1990 6x618 3 708 3 558 Majuba 5 Volksrust Apr 1996 to Apr 2001 3x657; 3x713 4 110 3 807 Matimba 5 Lephalale Dec 1987 to Oct 1991 6x665 3 990 3 690 Matla7 Bethal Sep 1979 to Jul 1983 6x600 3 600 2 875 Medupi5, 8 Lephalale Aug 2015 to Jul 2021 5x794; 1x790 4 760 4 320 Tutuka9 Standerton Jun 1985 to Jun 1990 6x609 3 654 2 925 Nuclear (1) Koeberg10 Cape Town Jul 1984 to Nov 1985 2x980 1 960 1 880 Peaking stations Gas/liquid fuel turbine stations (4) 2 397 2 380 Acacia Cape Town May 1976 to Jul 1976 3x57 171 171 Ankerlig Atlantis Mar 2007 to Mar 2009 4x149.2; 5x148.3 1 338 1 327 Gourikwa Mossel Bay Jul 2007 to Nov 2008 5x149.2 746 740 Port Rex East London Sep 1976 to Oct 1976 2x57; 1x28 142 142 Pumped storage schemes (3)11 2 732 2 724 Drakensberg Bergville Jun 1981 to Apr 1982 4x250 1 000 1 000 Ingula Ladysmith Jun 2016 to Feb 2017 4x333 1 332 1 324 Palmiet Grabouw Apr 1988 to May 1988 2x200 400 400 Hydroelectric stations (2)12 600 600 Gariep Norvalspont Sep 1971 to Mar 1976 4x90 360 360 Vanderkloof Petrusville Jan 1977 to Feb 1977 2x120 240 240 Total used for capacity management purposes 53 828 47 276 75 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Plant information continued Number and installed capacity Total installed Total nominal Years commissioned, of generator sets capacity capacity Name of station Location first to last unit MW MW MW Renewable energy Wind energy (1)13 Sere Koekenaap Mar 2015 46x2.2 106 100 Total capacity including renewable energy 53 934 47 376 Other hydroelectric stations (4)13 61 2 Mbashe14 Mbashe River 3x14 42 – First Falls14 Umtata River 2x3 6 – Ncora Ncora River 2x0.4; 1x1.6 2 2 Second Falls14 Umtata River 2x5.5 11 – Total Eskom power station capacities (30) 53 995 47 378 Nominal capacity available to the grid – Eskom-owned 87.75% Nominal capacity of Eskom-owned power stations 47 378 Independent power producers (IPP) capacity 8 565 Biomass 25 Concentrating solar power 600 Gas/liquid fuel 1 005 Hydroelectric 18 Landfill 8 Renewable with battery storage (RMIPPPP) 205 Solar PV energy 2 661 Wind 4 043 Total nominal capacity available to the grid – Eskom and IPPs 55 943 1. Arnot Unit 2 was placed in extended inoperability and removed from the nominal base for reporting purposes from 1 September 2025 until the end of December 2026. 2. Former moth-balled power stations that have been returned to service. The original commissioning dates were: • Camden was originally commissioned between August 1967 and September 1969 • Grootvlei was originally commissioned between June 1969 and November 1977 • Komati was originally commissioned between November 1961 and March 1966 Due to technical and/or financial constraints, some units at these stations have been derated. 3. The Duvha Unit 3 recovery project was cancelled and the unit was removed from the installed base in FY2018. 4. Certain units are under reserve storage and their capacity removed from the nominal base. 5. Dry-cooled unit specifications based on design back-pressure and ambient air temperature. 6. All of Komati’s units have been shut down, with the last unit shut down by 1 November 2022. The station is being repowered and repurposed as part of Eskom’s Just Energy Transition initiative. 7. Matla Unit 6 was placed in extended inoperability and removed from the nominal base for reporting purposes from 1 July 2025 until the end of August 2026. 8. Medupi Unit 4 was placed in extended inoperability and removed from the nominal base from 1 October 2022. It was once again included in the nominal base from 1 June 2025 and synchronised to the grid on 6 July 2025. 9. Tutuka Unit 6 was placed in extended inoperability and removed from the nominal base from 1 August 2024 until the end of July 2026. 10. Following the replacement of Koeberg’s steam generators, the nominal capacity of both units was rerated to 940MW in March 2026 (from 924MW for Unit 1 and 930MW for Unit 2). 11. Pumped storage facilities are net users of electricity. Water is pumped during off-peak periods so that hydroelectricity can be generated during peak periods. 12. Use is restricted to periods of peak demand, dependent on the availability of water in the Gariep and Vanderkloof Dams. 13. Installed and operational, but not included in the calculation of technical performance KPIs. 14. Small hydro stations were placed in reserve storage from 1 April 2021. 76 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Plant information continued POWER LINES AND SUBSTATIONS IN SERVICE at 31 March 2026 Category 2026 2025 2024 2023 2022 Power lines Transmission power lines, km1 33 691 33 367 33 367 33 234 33 233 765kV 2 784 2 784 2 784 2 784 2 784 533kV DC (monopolar) 1 032 1 032 1 032 1 032 1 032 400kV 20 360 20 036 20 036 19 916 19 916 275kV 7 395 7 395 7 395 7 395 7 342 220kV 1 352 1 352 1 352 1 352 1 352 132kV 728 728 728 714 766 Below 132kV 40 40 40 40 40 Distribution overhead power lines, km 369 068 369 342 367 335 363 603 363 286 132kV and higher 28 065 27 855 27 474 27 378 27 265 44 to 88kV 22 272 22 414 22 535 22 219 22 359 33kV 4 100 4 110 4 061 3 879 3 851 1 to 22kV 314 631 314 963 313 264 310 127 309 811 Distribution underground cables, km 8 496 8 472 8 425 8 376 8 339 132kV and higher 72 71 70 70 97 44 to 88kV 205 205 205 205 215 33kV 336 330 330 330 323 1 to 22kV 7 883 7 866 7 820 7 771 7 704 Total all power lines, km 411 255 411 181 409 128 405 213 404 858 Total transformer capacity, MVA 309 664 308 610 307 675 306 541 306 279 Transmission, MVA 2 161 423 161 223 160 748 160 468 160 148 Distribution and reticulation, MVA 148 241 147 387 146 927 146 073 146 131 Total transformers, number 420 656 418 521 415 367 415 351 414 632 Transmission, number2 517 517 518 516 515 Distribution and reticulation, number 420 139 418 004 414 849 414 835 414 117 1. Transmission power line lengths are included based on distances from the Geographic Information System. 2. In the past, only transmission lines with a primary voltage ≥132kV and transmission transformers rated ≥30MVA were reported. In an effort to align internal and external reporting, transmission lines and transformers with a lower voltage or rating have been included from FY2025. Comparatives were restated accordingly. 77 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Customer information 1. Prepaid electricity and public lighting are included under the residential category. Category 2026 2025 2024 2023 2022 2. IPP network consumption is included under industrial sales. Number of Eskom customers 3. The short-term energy market consists of all the utilities in the southern African Redistributors 789 792 799 799 799 countries that form part of the Southern African Power Pool. Energy is traded on a Industrial 2 480 2 501 2 516 2 560 2 601 daily, weekly and monthly basis as there is no long-term bilateral contract. Mining 882 889 894 906 926 4. The principle of only recognising revenue if it is deemed collectable at the date of sale, Commercial 49 028 49 183 49 968 50 846 52 736 as opposed to recognising the revenue and then impairing the customer debt when Residential1 6 666 383 6 997 657 7 046 042 6 944 488 6 833 928 conditions change, has been applied since 2015. External revenue of R30 112 million Agricultural 65 922 68 658 71 666 74 608 77 692 was thus not recognised at 31 March 2026. Rail 394 398 400 454 471 5. Under IFRS 15 Revenue from Contracts with Customers, certain supplies to International 13 12 11 11 11 redistributors were recognised on the cash basis, due to uncertainty around collectability at the time of sale. 6 785 891 7 120 090 7 172 296 7 074 672 6 969 164 Electricity sales per customer category, GWh Redistributors 78 275 78 993 76 102 79 480 83 831 Industrial2 33 457 43 153 44 231 44 635 45 220 Mining 27 268 27 239 28 072 27 843 28 030 Commercial 9 977 10 071 9 427 9 376 9 872 Residential1 9 043 8 776 8 559 9 177 10 520 Agricultural 4 987 5 286 4 911 4 785 5 382 Rail 1 701 1 673 1 647 1 668 2 128 International 13 324 14 532 10 362 11 437 13 298 178 032 189 723 183 311 188 401 198 281 International sales to countries in southern Africa, GWh 13 324 14 532 10 362 11 437 13 298 Botswana 1 013 771 179 370 851 Eswatini 796 871 710 609 713 Lesotho 654 794 370 416 341 Mozambique 7 674 7 873 7 662 8 228 8 215 Namibia 1 212 1 079 423 622 1 653 Zambia 1 002 1 847 83 25 6 Zimbabwe 62 1 083 927 1 152 1 456 Short-term energy market3 911 214 8 15 63 Electricity revenue per customer category, R million Redistributors 161 422 145 299 124 302 111 414 105 369 Industrial2 54 730 63 509 61 367 53 269 48 204 Mining 60 078 52 761 47 923 39 958 36 630 Commercial 26 815 24 869 20 900 17 622 16 723 Residential1 24 759 22 161 19 317 18 052 18 680 Agricultural 17 399 16 291 13 858 11 660 11 600 Rail 4 514 4 333 3 835 3 374 3 477 International 19 205 21 611 11 457 10 699 11 450 Gross electricity revenue 368 922 350 834 302 959 266 048 252 133 Less: Revenue not recognised4 (30 112) (23 797) (17 245) (15 774) (14 215) Add: Revenue recognised on the cash basis5 14 269 11 864 8 347 7 563 6 543 Electricity revenue per note 32 in the annual financial 353 079 338 901 294 061 257 837 244 461 statements 78 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Environmental implications of using or saving electricity FACTOR 1 Figures are calculated based on total electricity sales by Eskom, which is based on the total available for distribution (including purchases), after excluding losses through transmission and distribution (technical losses), losses through theft (non-technical losses), our own internal use and wheeling. Thus to calculate CO2 emissions per MWh, divide the quantity of CO2 emitted by electricity sales: 184Mt of CO2 ÷ 178 032GWh sales = 1.03 tons per MWh FACTOR 2 Figures are calculated based on total electricity generated by Eskom, which includes coal, nuclear, pumped storage, wind, hydro and gas turbines, but excludes the total consumed by Eskom. Thus, divide the quantity of CO2 emissions by (electricity generated less Eskom’s electricity consumption for pumped storage stations): 184Mt of CO2 ÷ (184 966GWh generated less 5 762GWh own consumption for pumping) = 1.03 tons per MWh Figures represent the 12-month period from 1 April 2025 to 31 March 2026. Factor 1 Factor 2 If electricity consumption is measured in: (total energy (total energy sold) generated) kWh MWh GWh TWh Coal use 0.54 0.54 kilogram ton thousand tons (kt) million tons (Mt) Water use1 1.36 1.35 litre kilolitre megalitre (Mℓ) thousand megalitres Ash produced 157 156 gram kilogram ton thousand tons (kt) Particulate emissions 0.99 0.98 gram kilogram ton thousand tons (kt) CO2 emissions2, 3 1.03 1.03 kilogram ton thousand tons (kt) million tons (Mt) SO x emissions2 7.98 7.92 gram kilogram ton thousand tons (kt) NO x emissions4 3.90 3.88 gram kilogram ton thousand tons (kt) 1. Volume of water used at all Eskom power stations. 2. Calculated figures based on coal characteristics and power station design parameters. Sulphur dioxide and carbon dioxide emissions are based on coal analysis and using coal burnt tonnages. Figures include coal-fired and gas turbine power stations, as well as oil consumed during power station start-ups and, for carbon dioxide emissions, the underground coal gasification pilot plant. 3. This calculated figure should not be considered an official grid emission factor. While Eskom has taken reasonable care in collecting and analysing data, Eskom is not responsible for any loss that may result from the use of this information. Before making any business decisions, interested parties are advised to refer to grid emission factors published by DFFE. 4. NO x reported as NO2 is calculated using average station-specific emission factors, which have been measured intermittently, and tonnages of coal burnt. Multiply electricity consumption or saving by the relevant factor in the table above to determine the environmental implication. Example 1: Water consumption Example 2: CO2 emissions Using Factor 1 Using Factor 1 Used 90MWh of electricity Used 90MWh of electricity 90 x 1.36 = 122.4 90 x 1.03 = 92.7 Therefore 122.4 kilolitres of water used Therefore 92.7 tons CO2 emitted Using Factor 2 Using Factor 2 Used 90MWh of electricity Used 90MWh of electricity 90 x 1.35 = 121.5 90 x 1.03 = 92.7 Therefore 121.5 kilolitres of water used Therefore 92.7 tons CO2 emitted 79 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information Corporate information ESKOM HOLDINGS SOC LTD Incorporated in the Republic of South Africa Registration number 2002/015527/30 REGISTERED OFFICE Eskom Megawatt Park 2 Maxwell Drive Sunninghill Sandton 2157 PO Box 1091 Johannesburg 2000 Switchboard +27 11 800 8111 Customer call centre 08600 ESKOM or 08600 37566 DEBT SPONSOR Nedbank Corporate and Investment Banking, a division of Nedbank Limited JSE alpha code BIESKM FOR MORE INFORMATION INVESTOR RELATIONS Lerato Mufuma-Mashinini InvestorRelations@eskom.co.za MEDIA ENQUIRIES Daphne Mokwena MediaDesk@eskom.co.za GROUP CHIEF EXECUTIVE Dan Marokane CEcorrespondence@eskom.co.za GROUP CHIEF FINANCIAL OFFICER Calib Cassim OfficeoftheCFO@eskom.co.za QUERIES OR FEEDBACK ON OUR REPORTS IntegratedReporting@eskom.co.za Our suite of reports covering our integrated results for 2026 is available at https://www.eskom.co.za/investors/integrated-results/ FORWARD-LOOKING STATEMENTS Certain statements in this report regarding Eskom’s business operations may constitute forward-looking statements. These include all statements other than statements of historical fact, including those regarding the financial position, business strategy, management plans and objectives for future operations. Forward-looking statements constitute current expectations based on reasonable assumptions, data or methods that may be imprecise and/or incorrect and that may be incapable of being realised. As such, they are not intended to be a guarantee of future results. Actual results could differ materially from those projected in any forward-looking statements due to various events, risks, uncertainties and other factors. Eskom neither intends nor assumes any obligation to update or revise any forward-looking statements contained in this report, whether as a result of new information, future events or otherwise. Future performance plans and/or strategies referred to in this report have not been reviewed or reported on by the group’s independent auditors. 80 ESKOM HOLDINGS SOC LTD Performance report 2026 Transforming energy Growing Strengthening Interacting with Sustaining Financial Supplementary ABC to create value our people our infrastructure the environment communities overview information www.eskom.co.za 81 ESKOM HOLDINGS SOC LTD Performance report 2026