Eskom’s Group Chief Executive, Dan Marokane, held a media briefing on June 14, 2024, to provide an update on his first 100 days in office and outline Eskom’s future strategy.
Priorities and Progress
Marokane’s initial priorities included unbundling the utility, maintaining healthy stakeholder relations, and reviewing the generation recovery plan. These actions aim to create a competitive and sustainable Eskom.
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Marokane emphasized the importance of unbundling for stabilizing and improving Eskom’s efficiency. However, the process has taken longer than anticipated, with expected cost efficiencies not yet realized. Eskom plans to augment capabilities and clarify cost-reflective tariffs for unbundled entities.
Operational Recovery and Future Outlook
Marokane highlighted plans to operationalize the National Transmission Company of South Africa (NTCSA) on July 1, 2024. He stressed that improving governance is essential for operational recovery. While acknowledging significant challenges, Marokane expressed optimism about Eskom’s potential to play a leading role in ensuring a stable electricity supply for South Africa.
Successes and Ongoing Loadshedding Risk
Marokane reported significant progress in reducing unplanned outages, contributing to 79 days without loadshedding. He praised the reduction in unplanned losses, now averaging 12,000MW, below the initial 14,000MW threshold. This has led to decreased diesel usage and substantial savings.
Marokane attributed the positive changes to aggressive planned maintenance, dedicated employees, and interventions based on VGBe findings. Despite these successes, he cautioned that loadshedding remains a risk and is not yet behind us.
Upcoming Strategies for Eskom
Eskom is implementing several strategies to address challenges and secure its future. These include:
- Shutting down corruption and establishing leadership stability.
- Finding solutions for unsustainable municipal debt.
- Combating electricity theft through legal connections and smart meters.
Eskom aims to rebuild trust and credibility through transparent performance, positioning itself for future investment. Over the next 36 months, key initiatives include:
- Increasing the Energy Availability Factor (EAF) to 70%.
- Returning over 2.5GW of capacity to the grid by March 2025.
- Developing a pipeline of clean energy projects.
- Re-baselining costs and improving efficiencies.
- Pursuing a sustainable solution for municipal debt.
- Delivering the unbundling of Distribution and Generation divisions.
- Accelerating initiatives for a Just Energy Transition.
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Marokane concluded by expressing confidence in the progress made and the designed interventions that have led to positive outcomes.