Flying well: Eskom is spending less on diesel fuel this year than in the past two years and expects diesel usage to remain low for the rest of the winter. Photo: Waldo Swegers/Getty Images
PPower utility Eskom says it will spend less on diesel this year than the past two years and expects diesel use to remain low for the rest of the winter.
The company said in a statement that its diesel fuel costs from April 1 to August 22, 2024, were R3.59 billion, about 75% lower than the same period last year. In rand terms, this works out to R10.6 billion less than the R14.19 billion it spent last year.
“Diesel fuel consumption is significantly lower than forecast this winter and significantly lower than in the past two years,” Eskom said.
The company noted that diesel use remains important in managing electricity demand during peak hours, especially at night between 5pm and 10pm.
The company added that diesel fuel usage has been below budget since the beginning of the year.
According to BusinessTech, Eskom's diesel budget for 2024 was R23.38 billion.
The Mail and Guardian reported that South Africa's National Energy Regulator (Nersa) has accused Eskom of blowing through more than half of its quarterly budget for the diesel division for the first quarter of 2024-25 in just one month.
At the time, critics suggested the power company had succumbed to political pressure to keep power flowing at all costs ahead of a general election on May 29.
Answering questions in parliament in April, former public enterprises minister Pravin Gordhan said Eskom had spent R64.78 billion on diesel fuel for open-cycle gas turbines over the past five years.
Eskom recently dismissed the criticism, saying improvements to the Energy Availability Factor (EAF) and planned maintenance had reduced diesel fuel consumption and cut power outages.
The company said the outage has lasted 150 consecutive days and that power supply has not been interrupted since March 26, 2024.
This is the longest period without a power outage since 2021.
The average EAF over the past seven days remained at 68% with the best performing power stations at Kusile, Kendal, Majuba, Letabo and Peaking recording EAF of 70%.
Additionally, three other plants also had EAFs above 60%.
“This improvement is the result of the ongoing benefits of accelerated and executed planned maintenance, partnerships with original equipment manufacturers (OEMs) and the dedicated efforts of plant managers and their teams,” Eskom said.
The power company is scheduled to release its outlook for the summer period (September 1, 2024 to March 31, 2025) on Monday, August 26, 2024.
