/ 24 August 2024

Eskom’s diesel costs reduced by more than R10 billion

Eskom Holdings Ltd.'s Kusile Coal Fired Power Plant
Flying high: Eskom has spent less on diesel this year than it did in the previous two years and projects that diesel usage will remain low for the rest of winter. Photo: Waldo Swiegers/Getty Images

Power utility Eskom has spent less on diesel this year than it did in the previous two years and projects that diesel usage will remain low for the rest of winter. 

In a statement, the utility said its expenditure for diesel from 1 April to 22 August 2024 was R3.59 billion, about 75% less compared with the same period last year. In rand terms this translates to R10.60 billion less than the R14.19 billion spent last year.

“Diesel consumption remains significantly below projected figures for this winter and is considerably lower than the past two years,” Eskom said. 

The utility noted that the use of diesel is still important in managing electricity demand during peak times, particularly during evenings from 5pm to 10pm. 

It  added that diesel usage remains below the year-to-date budget. 

According to Business Tech, Eskom’s diesel budget for 2024 was R23.38 billion. 

The Mail & Guardian reported that the National Energy Regulator of South Africa (Nersa) has called out Eskom for blowing more than half of its quarterly budget for diesel for the first quarter of the 2024-25 financial year in just one month.

At the time, critics suggested that the utility has caved in to political pressure to keep the lights on at all costs ahead of 29 May general elections.

In a parliamentary response in April, former public enterprises minister Pravin Gordhan said Eskom spent R64.78 billion in the past five years on diesel for its open cycle gas turbines. 

Recently, Eskom rebuffed critics saying improved energy availability factor (EAF) and planned maintenance has resulted in it burning less diesel and there being fewer blackouts.  

The utility said load-shedding has remained suspended for 150 consecutive days, with an uninterrupted power supply since 26 March 2024.

This is the longest period without power cuts since 2021. 

It maintained an average EAF of 68% over the past seven days, with the best-performing power stations — Kusile, Kendal, Majuba, Lethabo and Peaking — recording an EAF of 70%. 

Additionally, three other power stations achieved an EAF above 60%. 

“This improvement is due to the continued benefits of accelerating and executing planned maintenance, partnering with the original equipment manufacturers (OEMs), and the dedication of power station managers and their teams,” Eskom said. 

The power utility will announce its outlook for the summer period (1 September 2024 to 31 March 2025) on Monday, 26 August 2024.