For the first six months of FY2025, from April to September 2024, the power utility reported substantial operational improvements, including a 4% year-on-year increase in sales volumes and a dramatic R11.9bn reduction in diesel usage. Crucially, no loadshedding occurred during this period, a stark contrast to previous years.
Source: Eskom
CEO Dan Marokane called this period a “critical step in Eskom’s recovery journey,” highlighting progress achieved through the Generation Recovery Plan.
The energy availability factor improved significantly, while efficiency measures and government debt relief contributed to stabilising operations.
Despite the optimistic outlook, FY2024 (1 April 2023 to 31 March 2024) was one of Eskom’s most challenging years.
The utility reported a R25.5bn loss before tax, albeit an improvement from the R34.6bn loss in FY2023.
A once-off accounting adjustment linked to the separation of the National Transmission Company South Africa (NTCSA) pushed the after-tax loss to R55bn.
A handle on load shedding
Load shedding reached a record 329 days during FY2024, compared to 280 in FY2023, as Eskom executed extensive planned maintenance under its recovery plan.
Diesel costs soared to R33.9bn, and electricity theft caused a staggering R23bn revenue loss.
These challenges were compounded by a decline in sales volumes and a qualified audit opinion highlighting irregular expenditure and incomplete PFMA records.
Unaudited results for the first half of FY2025 signal a potential turnaround
Operational improvements and increased energy availability contributed to the forecasted profit for the year, supported by government debt relief and Eskom’s renewed focus on efficiency.
Eskom says it aims to achieve a 70% energy availability factor by March 2025.
“We’ve laid the foundation for future success and are working tirelessly to ensure a sustainable Eskom,” said Marokane.
“The improved metrics demonstrate the effectiveness of our interventions and highlight what is possible in a reformed energy market.”
Governance and financial concerns
Eskom continues to grapple with legacy issues and the FY2024 audit raised concerns about irregular expenditure, financial misconduct, and governance failures.
Company leadership has implemented measures to strengthen internal controls, capacitate investigative functions, and address consequence management.
A forensic investigation into electricity theft uncovered collusion between staff and external parties in the generation of fraudulent prepaid tokens.
The investigation is ongoing, with state authorities involved.
Sustainability in sight
Eskom’s recovery depends on resolving several systemic challenges, including its R110bn municipal arrear debt, achieving cost-reflective tariffs, and implementing structural reforms in the country’s energy sector.
“Our ability to stabilise and grow depends on the collective efforts of stakeholders. We must resolve Eskom’s highly leveraged balance sheet and ensure operational recovery to meet the country’s energy needs,” said Mteto Nyati, Eskom board chair.
If the current trajectory continues, the utility could become a cornerstone in rebuilding South Africa’s energy security, instead of a weight dragging it down.
