Eskom has declined to say which costs are left out of its official budgets for the Medupi and Kusile power stations, according to EE Business Intelligence.
In a media statement on 10 September 2026, Eskom said the approved construction budget for Kusile remains R160.5 billion. It said R155.5 billion of that has been spent.
Eskom said Medupi’s approved construction budget remains R145 billion, with R131.1 billion spent. In the same statement, it criticised Daily Investor and MyBroadband for reporting higher figures of R233.4 billion and R176 billion.
On 15 September, EE Business Intelligence asked Eskom whether its figures included several capital costs. It also asked about costs caused by breakdowns and delays, and for rough estimates of any items left out.
Eskom’s Media Desk replied that its 10 September statement “constitutes Eskom’s response”. When asked directly if Eskom was refusing to answer, there was no further reply, EE Business Intelligence said.
The research firm said one item is clearly missing from the budgets. Eskom’s own 2016 integrated report showed that Medupi’s R145 billion business case did not include R43.7 billion in borrowing costs.
The same report said Kusile’s R161.4 billion business case also left out borrowing costs. Interest during building grows each year a large project runs late.
EE Business Intelligence also pointed to the flue gas desulphurisation (FGD) plant at Medupi. This equipment cuts sulphur dioxide pollution. Eskom’s 2026 integrated report puts the Medupi FGD retrofit at R41.7 billion.
According to the firm, the FGD plant was part of Eskom’s World Bank financing deal. It is also needed to meet South Africa’s minimum emission standards.
Other costs include water supply works in Lephalale and power lines to connect each station to the grid. Eskom’s Transmission Development Plan once listed more than R13 billion of planned grid work linked to Medupi.
The plan separately set aside R2.8 billion for the first phase of Kusile’s grid connection. It warned that later costs were not included.
The firm also listed major breakdowns. Medupi Unit 4 was out of service from a generator explosion on 8 August 2021 until 6 July 2025. This took about 700 MW off the grid for almost four years.
At Kusile, a flue duct failure in October 2022 knocked out Units 1, 2 and 3. About 2,100 MW was lost for much of the following year.
By adding borrowing costs and the FGD estimate to the R145 billion budget, EE Business Intelligence put Medupi’s cost at more than R230 billion. It said these numbers come from different years and are not a final total.
Construction began at Medupi in May 2007 and at Kusile in August 2008. Early plans had all units running by 2014 and 2015.
Medupi’s last unit started commercial operation on 31 July 2021. Kusile’s last unit followed on 29 September 2025. Eskom said contract and project close out work will continue until July 2028.
Source: this article is based on reporting by mybroadband.co.za. Image: mybroadband.co.za. Written with the help of AI and published by the Tzaneen Voice Business desk. See our Editorial Standards.
Anelisa Nkuna covers business and money news for Tzaneen Voice. Anelisa reports on the rand, fuel prices, interest rates, jobs, Eskom, Transnet, farming and company results. The aim is simple: explain what the numbers mean for household budgets, small businesses and workers in South Africa.