WHAT TYPE OF PROFIT WHICH IS EARNED BY ESKOM IN THE LONG RUN?

In the long run, Eskom, as a state-owned electricity supplier in South Africa, aims to achieve a normal profit, which covers its costs and provides a reasonable return on investment. However, due to various challenges such as operational inefficiencies, financial constraints, and regulatory pressures, it often struggles to sustain profitability. The company may also experience periods of economic profit when operational improvements or changes in pricing structures enhance its financial performance. Ultimately, the long-term goal is to maintain financial viability while ensuring reliable energy supply.