On Sunday 13 October 2024, Eskom marked 200 consecutive days of uninterrupted power supply since 26 March 2024. For the utility and for the country, this is a laudable achievement. Eskom says it is a result of its Generation Operational Recovery Plan.
In a statement the utility said, this plan has reduced unplanned outages by ~8.6% and improved the Energy Availability Factor (EAF) by ~7.7% (year-on-year), enhancing the reliability of the generation fleet. Importantly, it has also impacted positively on the economic outlook and Eskom’s profitability. Implemented effectively, 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 Group Chief Executive, Dan Marokane said: “We are in an incredibly exciting industry at a moment of tangible change. As we prepare for a competitive electricity market, this is a significant milestone in ensuring energy security and attracting investment for South Africa.”
Eskom Group Executive for Generation, Bheki Nxumalo highlighted: “The dedication of all Eskom employees has been crucial in driving these positive outcomes, and their contributions are clearly reflected in today’s results. We wish to convey our thanks to all our employees for reaching this achievement and we recognise that this is the result of immense hard work and time spent away from friends and families to deliver a national imperative in a high-pressure turnaround environment.”
“To address the crisis that the current Eskom Board inherited when they took office in October 2022, the board commissioned an independent investigation and consulted with power station management, using a data-driven approach to create the Generation Recovery Plan. Today’s achievement is a testament to the dedication and hard work of our entire team in implementing this plan. It demonstrates that with the right leadership, strategic planning, and unwavering commitment, we can overcome even the most daunting challenges. Eskom’s journey towards a stable and reliable power supply is well on track, and we remain focused on sustaining this progress for the benefit of all South Africans,” said Eskom Board Chairperson, Mteto Nyati.
“The Eskom Board is grateful for the support and collaborative efforts of all our key stakeholders, including the government and the National Energy Crisis Committee (NECOM) members which enabled us to reach this milestone today,” Nyati added.
Eskom 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 ensure a stable energy supply and further reduce diesel expenditure. Additionally, Eskom is focused on reducing municipal arrears 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. This restructuring is aimed at enhancing efficiency and strengthening the company’s future sustainability.
Eskom is further committed to diversifying its energy sources and plans to initiate new build of 2 000 MW of clean energy projects as part of its push for a sustainable energy future.
Minister Ramokgopa recognises the role of leadership
At a media briefing on October 14, following the announcement from Eskom and celebrating the achievement of 200 days without loadshedding, Minister of Energy and Electricity, Dr Kgosientsho Ramokgopa, lauded the performance of Eskom and its fleet over the past two months as, not a miraculous act, but a testament to science, leadership and the workforce of the state-owned company.
At the briefing, held at the Lethabo Power Station in the Free State, Ramokgopa said: “There has been an effort to ensure that at a station level, we get people with the right skills, the right credentials, people with the appropriate experience to be able to help us to resolve the challenges.
“The team identified about six stations responsible for about 70% of the losses and they formulated a cogent response.”
He praised the leadership and ongoing efforts shown in all spheres to turn around the power utility. He said it’s important to appreciate that there are multiple elements – “some not in your face” – that contributed to this. “First and foremost is the issue of leadership. Someone had to be in the leadership role to execute the turnaround plan. Leadership is key to the resolution of any problem.
“Eskom presents an exceptional template, illustrating what can be achieved when we invest in leadership,” Ramokgopa said. He noted too that tackling loadshedding also required finding the right people with the right skills.
“What the team did was to ensure that all the critical vacancies are filled. This could be done on the back of an Eskom that is performing, and with the fiscal support received from National Treasury.”
Although the minister praised the Eskom team, he warned that there is more work to be done to eradicate loadshedding completely.
“When we come to a period in our life here in South Africa, where we stop celebrating and counting the number of 'no loadshedding' days, that will represent a major victory for us. We are not out of the woods yet, so we will not claim easy victories.
“With the Generation Recovery Plan, we are on the right path and all indicators are pointing to a positive performance. To date, we are beyond where we expected to be at this time. We still aim to achieve that 70% Energy Availability Factor by 2025, and the team is on course to do that,” Ramokgopa said.
For more information visit: www.eskom.co.za
