South African power utility Eskom continues to face significant challenges despite returning to profitability, according to The Citizen Business. The utility remains burdened by smothering debt and ongoing governance problems, suggesting its financial recovery is not yet secure. The report outlines three warning signs indicating that Eskom's turnaround remains fragile, with its debt obligations and internal governance issues posing risks to sustained improvement at the state-owned electricity provider.

South African power utility Eskom faces scrutiny over the sustainability of its profitability as municipal debt owed to it climbs to nearly R120 billion while electricity sales volumes decline by 6.2%. According to The Citizen Business, the figures raise questions about whether the utility's financial gains are being achieved at the expense of struggling municipalities and consumers, amid ongoing concerns about affordability and declining demand across the country.

Eskom's additional R54 billion from tariffs is set to be challenged in court once more, as the National Energy Regulator of South Africa (Nersa) faces accusations of concealing the irrationality behind its decision regarding the power utility's revenue. This legal dispute highlights ongoing tensions surrounding energy pricing and regulatory practices in the country.

Sasol has experienced a 20% drop in its stock value, but analysts suggest that the company's improving operational performance presents a potential buying opportunity for investors. They believe that this positive trend extends the investment case beyond the current energy geopolitical premiums, according to The Citizen Business.

Johannesburg has taken out a significant loan to address its electricity issues, as the city's power infrastructure and billing systems require urgent improvements. A survey indicated that only 38% of residents were satisfied with their electricity services in 2023/2024, a sharp decline from 77% in 2017/18. The auditor general reported that the city allocated only 1% of its operating budget for maintenance in 2024/25, well below the recommended 8%.

South Africa's energy regulator NERSA has opened a public comment period on Eskom's proposed 8.83% electricity tariff increase for 2027, according to SABC Business. Members of the public and stakeholders are invited to submit their views on the state power utility's application before the regulator makes a decision on the hike.