Eskom today (19 December) reported a staggering after-tax loss of R55 billion for the 2024 financial year.
The state-owned power utility blamed the poor performance in 2024 on its coal-fired power stations, adding that a lack of “cost-reflective” tariffs is to blame as well.
Eskom also cited escalating municipal arrears, unsustainable debt levels and electricity theft (amounting to some R23 billion).
Key highlights from Eskom’s 2024 financial year
It’s been a year….
- Load shedding: We had 329 days of load shedding in 2024. The WORST year on record.
- Operational costs: Expenditure on Open Cycle Gas Turbines (OCGT) soared to R33.9 billion
- Eskom relied heavily on diesel-powered generators to mitigate power shortages.
- Municipal debt: Arrears from municipalities escalated to R74.4 billion.
- Internal controls: Numerous breakdowns in internal controls, leading to repeat audit findings.
Despite these setbacks, Eskom projects a turnaround in the 2025 financial year, anticipating an after-tax profit exceeding R10 billion.
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Positive developments in 2025
Eskom is talking about stable electricity supply in 2025, along with OCGT cost-saving measures, and enhanced controls.
- Stable electricity supply: Notably, there have been no load shedding incidents.
- To date, we’ve had over 250 days of uninterrupted electricity supply.
- To date, we’ve had over 250 days of uninterrupted electricity supply.
- Cost savings: Eskom says it will achieve savings of R11.9 billion in OCGT expenditure during the first six months.
- Enhanced controls: Eskom reports stricter adherence to internal controls.
- The power utility wants to rectify previous governance issues and bolster financial management.
But (there’s always a but…) challenges still persist.
This level of municipal debt is particularly concerning, and it’s projected to rise to between R95 billion and R110 billion by the end of FY2025.
Eskom’s leadership emphasises a commitment to improving plant performance, reducing unplanned outages, and achieving an Energy Availability Factor (EAF) of 70% by March 2025.
The imminent synchronisation of Kusile Unit 6 to the grid and the expected return to service of Medupi Unit 4 by March 2025 are pivotal to enhancing generation capacity.
