Eskom fails to achieve key targets
Eskom is expecting to fall short on several key performance targets before the end of FY26, according to its third-quarter business performance report.
Among the most notable failures, the report shows that Eskom missed its Energy Availability Factor (EAF) target for the quarter.
This metric indicates the time Eskom’s entire generation fleet is online and available to dispatch electricity. Eskom says it achieved an EAF of 64% in the quarter.
Eskom’s target is an EAF of 70%, and while the Q3 figure shows improvement over the second quarter, it is still struggling to meet its electricity generation goals.
Other key metrics Eskom missed may have negative repercussions for South Africans living under daily rotating blackouts due to load reduction.
One of these is smart meter installations across South Africa, with the ultimate target of installing 800,000 by the end of March 2026.
By the end of 31 December 2025, Eskom had installed 241,718 smart meters, well below its quarterly target of 400,000. As of 13 March, the utility had only installed 444,062 smart meters.
Therefore, Eskom has only 18 days to install 355,938 smart meters to meet its target for the year.
The utility will use smart meters to “manage demand and enhance grid stability”, which it said would help it meet its goal of ending load reduction for around 1.7 million South Africans by 2027.
Load reduction is a form of demand reduction typically implemented in communities with high levels of electricity theft. Eskom says load reduction helps protect its infrastructure from overloading.
Another way Eskom sought to handle load reduction and reduce the demand burden on its infrastructure was by building microgrids in selected communities.
The report reveals that the utility has only managed 99 off-grid electrification connections in the third quarter, far short of its 1,225 year-end target.
It only expects around 760 micro-grids to be running by the end of March 2026.
The final missed metric that delays the end of load reduction is a lag in the rollout of free basic electricity. While the average number of beneficiaries fluctuates, the baseline now sits around 485,000 customers.
This is still only about 28% of the estimated 2.1 million eligible customers in South Africa.
Overall, Eskom says it has only managed to remove 34.5%, or around 200,000 customers, from load reduction before the end of March 2026. It was initially targeting 577,347 customers.
No new grid capacity heading into 2026
| Metric | Target | Actual Performance |
|---|---|---|
| Energy Availability Factor (EAF) | 70% | 64% |
| Smart Meter Installations (Quarterly) | 400,000 | 241,718 |
| Smart Meter Installations (Yearly) | 800,000 | 444,062 |
| Off-grid Electrification Connections | 1,225 (Year-end) | 760 expected |
| Free Basic Electricity Rollout | 2.1 million customers | 485,000 customers (28%) |
| Customers Removed from Load Reduction | 577,347 | 200,000 (34.5%) |
| New Electricity Capacity Additions | 95MW | 0MW |
| Transmission Line Installations | 423KM | 186KM |
| Fraud Case Resolution | 80% | 50% |
Other missed targets in the quarter include faltering performance for new electricity capacity additions. Eskom was targeting adding at least 95MW, but added 0MW.
The utility also revealed that it had only managed to install 186km of transmission lines against a target of 423km.
The final target the utility missed in the quarter was fraud cases, as only 50% were resolved. It initially eyed a 80% by the end of the quarter.
A massive backlog of historical cases and the struggle to find capacity to resolve new cases continued to impact Eskom’s fraud investigation team.
The utility also indicated in its performance report that municipal arrear debt had now increased to R110.5 billion as of December 2025.
Earlier this month, the utility warned that at least 14 municipalities across the country would soon face power interruptions due to outstanding municipal debts.
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