Eskom's Recent Performance Spike May Not Spell Permanent Relief for South African Consumers

For South Africans feeling the pinch of frequent power disruptions, the temporary relief provided by the state-owned utility provider, Eskom, in recent days may be misleading. This caution was sounded by Professor Anton Eberhard of the Kgalema Mothlanthe Foundation's Inclusive Growth Forum. According to him, the utility's progress, notably breaching the 60% energy availability factor (EAF) after a year, should not be misinterpreted as a sign of a major turnaround.

Eskom was able to keep the lights on for a record period in 2023 due to the revival of Kusile Units 1, 2, and 3. However, the gap left by aged power stations breaking down faster than new ones are erected remains a daunting issue.

South Africa remains subjected to stage 2 load-shedding during the day, escalating to stage 3 in the evenings. Professor Eberhard warned that the complexities and magnitude of the issues Eskom faces are underestimated. He further stressed the high cost and difficulty involved in meaningfully addressing these problems.

Eskom's lack of funds and resources for prolonged maintenance and necessary investments worsens the situation. It currently funnels billions of rands into diesel to power open-cycle gas turbines (OCGTs) in an effort to fend off load-shedding.

The dilemma of storage shortage has led to the use of floating tankers for diesel storage. State-owned oil company, PetroSA, reported use of these vessels off the southern coast near Mossel Bay. Despite these efforts, the utility also doubled the spending on fuel in the year through 31 March, pointing out to a deep-rooted problem.