Eskom reduces diesel spend by R9bn

Eskom has recorded a reduction of some R9 billion in diesel expenditure from 1 April 2024 to 7 August 2024, compared to the same period last year.

This as the power utility has kept load shedding at bay for more than 135 days and reduced reliance on Open Cycle Gas Turbines (OCGTs), which use diesel to generate energy.

During a media briefing on Monday, the Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa, explained that because of Eskom’s sustained Energy Availability Factor (EAF), spending on the fuel has decreased significantly.

“If your EAF is up, it means that you are less reliant on the Open Cycle Gas Turbines. So you are burning less and less diesel. Since the beginning of the financial year, we have brought down the use of diesel by 73%. So we have saved about R9.6 billion compared to the same period last year. That’s significant.

“It’s good for Eskom’s own balance sheet and its liquidity. We can reinvest this money back into the people and into the [generating] units so that we can continue to see the kind of phenomenal improvements that we have been seeing and we can stave off load shedding,” he said.

The Minister expressed optimism that Eskom is moving towards a reality where OCGTs are only used “as and when we need them”.

“The amount of time that we have been calling on [the OCGTs], since the 1st of April, averages about 4%. If you look at the same period last year, we were using them about 20.6% of the time. “

He said the performance of Eskom is an indication that the Energy Action Plan announced by President Cyril Ramaphosa in 2022 is producing tangible fruit.

“We are really optimistic about the situation. The net picture confirms that we are on a good path… It confirms the efficacious nature of our intervention. It’s giving us the kind of results that are desirable and most households can see that,” Ramokgopa said. – SAnews.gov.za