‘We don’t congratulate fish for swimming in water’: Eskom warned about risk of load shedding

Eskom has been cautioned that South Africa remains at risk of load shedding despite achieving 252 days of uninterrupted electricity supply.

Eskom officials briefed Parliament’s Energy and Electricity Portfolio Committee on Wednesday regarding the power utility’s performance.

Load shedding impact on Eskom’s financial performance

Eskom CEO Dan Marokane informed MPs that the utility has significantly improved its operational performance, which will be reflected in its financial standing.

Marokane reported that the company saved R16.3 billion in diesel costs over the eight months of no load shedding.

“This all translates to an improved financial performance, and we will see those results when we get to the end of the financial year,” the Eskom CEO said.

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He highlighted that revenue had improved year-on-year, primarily due to tariff increases and slightly higher sales attributed to sustained online operations without load shedding.

However, the release of Eskom’s financial results for the 2023/2024 fiscal year has been delayed as audit processes continue.

The results are now expected to be released by 20 December.

Municipal debt and maintenance plans

Looking ahead, Marokane said Eskom would continue with maintenance during the summer to prepare for the winter season.

“We anticipate to continue doing maintenance at the right levels that we had planned for, similar to last year, to ensure that next year’s winter is also as seamless as we experienced this year.”

Despite improved operational performance, municipal debt remains a critical concern for the utility.

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“That debt continues to grow,” Marokane stated, noting that Eskom has identified the top 10 municipalities with the highest levels of debt.

Electricity and Energy Minister Kgosientsho Ramokgopa revealed last month that municipal debt surged from R78 billion in July to R90 billion in three months.

Ramokgopa emphasised that the debt posed a significant risk to Eskom’s financial sustainability.

Just Energy Transition

Marokane also addressed Eskom’s decision to restart operations at Komati coal-fired power station in Mpumalanga, two years after its closure for conversion into a renewable power facility under the Just Energy Transition (JET) plan.

He explained that Eskom had revised its approach to the JET project to prioritise energy security and minimise socioeconomic impacts.

“You’ll recall that we just came out of the most intense and frequent load shedding last year, so it was really not making sense to shut down stations under such circumstances,” Marokane said.

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He stressed that shutting down the plant without considering the impact on the Komati community had proven detrimental.

“It was clear that we can’t continue to shut down coal power stations without due care for the impact on the communities. The value chain needs to be protected.

“Jobs and economic activities are important, and we need signed-off plans accepted by communities to enable a smooth transition.”

Concerns over Eskom load shedding risks

African Christian Democratic Party (ACDP) MP Wayne Thring dismissed the milestone of eight months without load shedding.

“We do not congratulate fish for swimming in water,” Thring told Eskom executives.

Meanwhile, MK Party MP Brian Molefe raised concerns over Eskom’s energy availability factor (EAF) of 63%, warning that it still places the country at risk of load shedding.

Molefe noted that while the Planned Capability Loss Factor (PCLF), which refers to planned maintenance, was at 6.7%, the Unplanned Capability Loss Factor (UCLF) was “very high” at 28.3%.

“The UCLF is the factor that puts us at risk of losing control of the system. If it increases to 35%, for example, you have lost control completely.

“But planned maintenance of 6.7% is still very low. I think the target should be 10% because ideally international standards [suggest] 80% EAF, 10% PCLF, and 10% UCLF.”

Molefe proposed implementing prepaid electricity across South Africa, including municipalities, to address non-payment issues.

“In that way, a municipality will also have to prepay for its electricity. There won’t be the issue of 30 days’ debt growing to three or five years,” the former Eskom CEO said.

You’ll also be able to borrow from people across the country because they pay in advance rather than in arrears,” he said.

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