- Eskom has successfully delivered 200 consecutive days of uninterrupted power supply since 26 March 2024 as a result of the Generation Operational Recovery Plan.
- In a statement, the state owned energy utility said the plan has not only reduced unplanned outages by 8.6% and improved the Energy Availability Factor (EAF) by 7.7%, but it has positively impacted on the country’s economic outlook and Eskom’s profitability.
- Eskom adds that the plan is projected to contribute to a potential 2% growth in the South African economy and improve Eskom’s financial performance for the financial year 2025 (April 1, 2024, to March 31, 2025).
Eskom reported poor performance across the board and a loss of R23.9 billion in the last financial year. Read more
Eskom also unsustainable debt of over R400 billion and demand for Eskom power has dropped plus the utility implements an extensive load reduction programme in areas where high levels of illegal connections are experienced. Read more
Eskom has relied on tax payer bailouts to the tune of nearly R500 billion to date. Read more
According to the country’s National Treasury 2024 Budget Review and Economic Outlook, over the next three years, South Africa’s economy is forecast to grow at an average of 1.6 per cent, a moderate improvement on the 1.4 per cent average expected at the time of the 2023 MTBPS.
Related news: Eskom municipal debt runs rampant to R82 billion
Over a three year period, government will provide Eskom with debt relief amounting to R254 billion. This will take the form of advances of R78 billion in 2023/24, R66 billion in 2024/25 and R40 billion in 2025/26. These amounts represent Eskom’s full debt settlement requirement over the next three years. They will be financed through the R66 billion medium- term expenditure framework (MTEF) baseline provision announced in the 2019 Budget, and R118billion in additional borrowing over the MTEF period. Additionally, in 2025/26, government will directly take over up to R70 billion of Eskom’s loan portfolio.
“We are in an incredibly exciting industry at a moment of tangible change. In preparation for a competitive electricity market this is a significant milestone to ensure energy security and attracting investment to South Africa. We are days away from a further milestone that demonstrates the stability of our fleet, on Saturday 18 October 2024 we are on track to reach 206 days without loadshedding, a result we last delivered five years ago on 15 October 2019,” said Dan Marokane, Eskom Group Chief Executive.
Eskom maintains it remains focused on achieving financial and operational sustainability by implementing ongoing structural improvements to enhance the reliability of its generation fleet. The target is to reach a 70% EAF by March 2025, which will not only ensure a stable energy supply but also reduce diesel expenditure. Additionally, Eskom is focused on reducing municipal arrear debt, strengthening measures to combat crime and corruption, and developing a skilled workforce to secure its long-term success.
As part of its strategy to foster a competitive energy industry, significant progress is being made towards the legal separation of Eskom’s operations. Plans are in place to establish independent generation and distribution subsidiaries under Eskom Holdings SOC Limited within the same timeframe. This restructuring aims to enhance efficiency and strengthen the company’s future sustainability.
Related news: South Africa’s newly unbundled National Transmission Company covertly sells 350MW power to Zambia through two PPA’s
Eskom says it is further committed to diversifying its energy sources by launching 2 000MW of clean energy projects as part of its push for a sustainable energy future. Read more
Author: Bryan Groenendaal
