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.

The Federal Government of Nigeria claims it is addressing the electricity sector's debt, stating it has reached approximately N4 trillion. However, Generation Companies (GENCOs) dispute this figure, asserting that the actual debt is N7 trillion and that no payments have been made. This ongoing disagreement highlights the tensions between the government and GENCOs regarding the financial status of the power sector.

South Africa is transitioning from coal-fired electricity, which currently accounts for 74% of its power, to renewable sources like wind and solar. This shift is complicated and is being hindered by the need for a different electricity system and new grid management strategies. Additionally, significant changes are required at Eskom, the state-owned utility that has historically dominated the power sector.

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.

According to Moneyweb, recent electricity price hikes are significantly impacting families, pushing them further into financial difficulties. The focus has shifted from issues of load shedding to the increasing costs of electricity, which are becoming unaffordable for many households.

The City of Johannesburg has secured a loan of R3.8 billion aimed at addressing its electricity issues. The funds will be used to tackle the backlog in maintenance and major capital works, which is expected to take time to resolve.