Eskom Marks Turning Point In Financial Year 2024, Says Minister Ramokgopa

Electricity and Energy Minister Kgosientsho Ramokgopa said the financial year ending in March 2024 marked a turning point for Eskom, assuring the country that Eskom will only improve from this point onward.

Despite the progress, the financial year ending in March was still a tough one for the power utility. The country faced at least 329 days of load shedding between April of last year and the end of March 2024, SA News reported.

During this period, plant availability decreased, distribution energy losses totaled about 13.9TWh, and emissions performance worsened. Eskom also reported a net loss before tax of around R25.5 billion, narrower than the previous year's loss of R34.6 billion.

The separation of the National Transmission Company led to a one-time accounting adjustment, resulting in a loss after tax of R55 billion.

Earlier this year, the National Transmission Company South Africa (NTCSA) started operating as a separate, fully owned subsidiary of Eskom. The NTCSA is now responsible for owning and managing the country's national transmission system.

The minister acknowledged the challenges Eskom faced during the past financial year but reminded South Africans that the utility has improved its performance. This has led to over 260 days without load shedding, better plant performance, and billions of Rands saved in diesel costs.

Eskom Group Chief Executive Dan Marokane acknowledged that while the year was tough for the electricity provider, it was also a key year in their recovery journey. This year saw the launch of the Generation Recovery Plan, with massive investments in maintenance and human resources needed for its execution.

Marokane highlighted that the government's debt relief program also started taking effect, providing more certainty and allowing Eskom to plan better and carry out necessary maintenance during the financial year.

He agreed with the minister's views, stating that the tough results are part of Eskom's recovery process. Marokane said that Eskom takes responsibility for the results, seeing them as part of their story and journey toward recovery, which will become clearer as they continue to make progress.

Eskom has successfully gone over 250 days without load shedding, saving nearly R17 billion in diesel costs compared to last year.