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You are here: Home / News / Business / Diesel Expenditure Falls 85% and EAF Improves 5.4% Year-on-year

Diesel Expenditure Falls 85% and EAF Improves 5.4% Year-on-year

19 June 2026 by Guest

Friday, 19 June 2026: Eskom sustains measurable improvements in system performance and operational efficiency as winter demand increases, underpinned by stronger generation performance and marked by a sharp decline in diesel usage. Continued gains in energy availability, together with a decline in unplanned outages and targeted network interventions, are reinforcing system stability and supporting consistent…

Eskom sustains measurable improvements in system performance and operational efficiency as winter demand increases, underpinned by stronger generation performance and marked by a sharp decline in diesel usage. Continued gains in energy availability, together with a decline in unplanned outages and targeted network interventions, are reinforcing system stability and supporting consistent electricity supply to customers across the country.

System performance continues to demonstrate resilience, with the financial year-to-date (1 April to 18 June 2026) Energy Availability Factor (EAF) rising to 63.54%, marginally up from 63.24% the previous week and significantly higher than 58.08% over the same period last year, an increase of 5.46% year-on-year. This reflects sustained progress under Eskom’s turnaround strategy, including a 9.49% improvement (4.8GW) compared to the same period three years ago.

These gains are underpinned by reduced unplanned outages and more consistent, reliable performance across the generation fleet.

On the targeted network interventions, about 886 717 households, approximately 52% of affected customers, have already been restored to normal supply as part of Eskom’s Load Reduction Elimination Programme. Full elimination is targeted in seven provinces by October 2026, with the remaining provinces, Gauteng and KwaZulu-Natal, expected to follow in 2027 as targeted interventions continue to address localised network constraints and overloading pressures.

Between 12 and 18 June 2026, average unplanned outages declined to 10 640MW, a significant reduction of 4 622MW from the 15 262MW recorded over the same period last year, almost equivalent to the capacity of Kusile Power Station. This improvement is also reflected in the Unplanned Capacity Loss Factor (UCLF), which improved to 22.19% from 31.83% in the corresponding period last year, representing a significant reduction of 9.49%.

During the same period, Eskom’s Planned Capacity Loss Factor (PCLF), which reflects planned maintenance, averaged 10.94%, higher than the 8.09% in the previous financial year and is aligned with Eskom’s efforts to ensure environmental compliance, improve reliability and support long-term sustainability.

In addition, 3 867MW is currently in cold reserve due to excess capacity.

For the financial year to date (1 April to 18 June 2026), diesel expenditure stands at R640.27 million at a load factor of 1.30% for the Open Cycle Gas Turbines (OCGTs), significantly lower than the R4.515 billion incurred over the same period last year at a load factor of 11.94%, an 89.09% year-on-year reduction and a diesel expenditure reduction of 85.82%.

Diesel in the past week was strategically deployed at peak demand times to meet the higher-than-expected demand as well as provide the required reserves in line with the South African Grid Code.

This continued reduction demonstrates both the cost savings and the operational improvements achieved through Eskom’s ongoing turnaround efforts. Overall, this positive trend highlights the growing stability and efficiency of the power system.

Since 16 May 2025, South Africa has recorded 399 consecutive days without interruptions to electricity supply, reflecting 100% system availability in meeting electricity demand.

During the previous financial year, supply interruptions were limited to 26 hours across four days in April and May 2025, underscoring the improved strength and reliability of the power system.

To further ensure a stable electricity supply, Eskom will bring 3 223MW of generation capacity online ahead of the evening peak on Monday, 22 June 2026. Today’s evening peak demand is forecast at 26 387MW, with 31 533MW of available capacity.

Eskom published the Winter Outlook on 22 April 2026, covering the period 1 April to 31 August 2026, which projects no loadshedding due to sustained improvements in plant performance from the Generation Recovery Plan.

Key Performance Highlights

  • For the financial year to date (1 April to 18 June 2026), UCLF has reduced to 22.42%, which is 6.87% lower than the same period in the previous year.
  • For the financial year to date (1 April to 18 June 2026), planned maintenance was at an average of 6 532MW, accounting for 13.82% of total generation capacity, higher than the 12.1% (5 687MW) over the same period in the previous year.
  • Year-to-date (1 April to 18 June 2026), OCGT generation declined year-on-year to 83.608GWh at a diesel cost of R640.27 million, down approximately 89.09% in output and 85.82% in costs compared to the corresponding period last year.
  • The financial year‑to‑date OCGT load factor stands at 1.30%, lower than the 11.94% recorded over the same period last year and well below the target annual load factor of 3%. This level is approximately half of the FY2026 target, reflecting increased confidence in improved fleet performance and reduced reliance on diesel‑fired generation.

Progress in ending load reduction: About 886 717 customers across South Africa are no longer impacted, representing about 52% of targeted households, with full elimination achieved in the Northern and Western Cape.

Although the power system remains stable and generation capacity continues to exceed demand, illegal connections and meter tampering persist in certain localised areas, driving infrastructure damage and posing serious safety risks. Eskom continues to implement load reduction as a temporary, targeted measure in high-risk areas to protect both communities and the electricity network.

To address these challenges sustainably, Eskom has launched a phased programme to eliminate load reduction by 2027. The programme targets 971 feeders and will benefit approximately 1.69 million customers across all provinces, out of Eskom’s total customer base of 7.2 million. Key interventions include the rollout of smart meters, the integration of Distributed Energy Resources, and the expansion of Free Basic Electricity (FBE) support. These measures will be accompanied by targeted customer education initiatives.

Progress on key interventions

  • Smart Meter Rollout:

Since inception, Eskom has deployed 1 798 091 smart meters nationwide, reflecting a significant scaling up of installations across the country. Of these, 409 011 meters have been installed on load reduction feeders, representing approximately 23% of deployments in high-priority areas. This targeted rollout is helping to ease grid pressure while enabling customers to access real-time consumption data and exercise greater control over their energy usage.

Of the 409 011 smart meters installed on load reduction feeders, approximately 94% are concentrated in Gauteng, Mpumalanga, Limpopo and KwaZulu‑Natal, where network risk is highest.

The rollout is deliberately focused on high-loss areas affected by illegal connections, meter bypassing, overloaded infrastructure and widespread electricity theft. Eskom has undertaken extensive community and stakeholder engagement through ward councillors, public meetings, radio platforms and social media to support the implementation of the programme.

Despite these efforts, installation teams continue to face persistent resistance, including intimidation, violent incidents and repeated work stoppages. These disruptions have led to deployment delays, the redeployment of teams, and heightened safety risks for Eskom employees and contractors.

As a result, over 122 000 planned meter conversions have been delayed to date, undermining the stability and predictability of the rollout programme.

Eskom is calling on all affected communities to partner with its teams to help accelerate the elimination of load reduction, in line with planned timelines or sooner where possible.

  • Feeders removed from Load Reduction:

A total of 484 feeders have been removed from load reduction, against a planned target of 971, reflecting approximately 50% progress. This includes:

  • 106 feeders in Limpopo and Mpumalanga (70% of the target of 150).
  • 236 feeders in Gauteng (39% of the target of 604).
  • 10 feeders in the Eastern and Western Cape (66.7% of the target of 15). Notably, the Western Cape achieved 100% of its target, resulting in the complete elimination of load reduction in the province.
  • 120 feeders in the Free State and KwaZulu-Natal (60.6% of the target of 193).
  • 12 feeders in the North West and Northern Cape (133.3% of the targeted 9). Notably, the Northern Cape achieved 100% of its target, resulting in the complete elimination of load reduction in the province.
  • Customers benefiting from the elimination of the load reduction programme:

To date, the removal of feeders from load reduction has enabled an estimated 886 717 customers to benefit, representing about 52% of the 1.69 million customers targeted for the programme. This includes 412 440 customers in Limpopo and Mpumalanga; 268 902 in Gauteng; 12 422 in the Eastern and Western Cape; 154 996 in KwaZulu‑Natal and the Free State; and 37 957 in the North West and Northern Cape.

  • Free Basic Electricity (FBE):

Nationally, registrations are at 571 589 customers. The FBE beneficiaries figure fluctuates monthly. The 571 589 figure reflects an 18% increase from the baseline of 485 000 customers and represents about 27% of the 2.1 million eligible customers.

Eskom is harnessing technology, upgrading infrastructure, and partnering with communities to ensure a safer, smarter, and more reliable power network for South Africa.

Eskom calls on communities to report illegal connections, use electricity responsibly, and protect infrastructure. Any illegal activity affecting Eskom’s infrastructure can be reported to the Eskom Crime Line at 0800 112 722 or via WhatsApp at 081 333 3323.

Eskom data sources

The Eskom data portal provides a 24/7 365 snapshot of system performance. [Eskom Data Portal].

Since May 2024, Eskom has released a detailed power system update every Friday, providing a consolidated view of key areas of its performance through the Media Desk and across its social media platforms. This is a deliberate effort to improve transparency.

Eskom will provide its next update on Friday, 26 June 2026, or communicate any significant developments as they occur.

Courtesy of Eskom

About Eskom and Electricity – Load Shedding: Has implemented load shedding during periods of high demand or maintenance.

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Category: BusinessTag: Electricity, Energy, Eskom

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  1. Star Scratch

    22 June 2026 at 8:38 am

    Lebo Gunguluza started his entrepreneurial journey with R60 and a lot of nerve. He managed to secure a bursary, which enabled him to study a BCom degree at the University of Natal. To earn money while he studied he became an agent for Edgars on campus, then went on to work in sales for the SABC. He launched his first business and made his first million by 27 but squandered it and had to work his way back to financial wealth. He launched Corporate Fusion, and at 33 his business was turning over R14 million, but he left it to others to run while he travelled the world, and he soon found himself in R4 million worth of debt. Several years later after paying off his debt, he launched GEM (Gunguluza Enterprises & Media) Group of Companies, which has become a multimillion rand business in it\’s first two-and-a-half years. He went on to become one of the \”dragons\’ on the South African edition of Dragons\’ Den, as well as one of the \”sharks\’ on M-Net\’s Shark Tank.

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