Eskom Turns to Cost Cuts as South Africa’s Power Supply Steadies After Long Outage Era

by Oluwatosin Racheal Alabi

KEY POINTS


  • Eskom says improved system stability allows it to focus on reducing electricity production costs.
  • Officials report a sharp drop in power plant breakdowns after years of severe load shedding.
  • Government acknowledges rising tariffs remain a heavy burden on households and businesses.

South Africa’s state owned power utility, Eskom says it is now prioritising efforts to reduce electricity costs while maintaining a reliable supply, marking a shift after years of rolling blackouts that strained households and businesses.

The utility said the national power system has stabilised despite ongoing challenges linked to ageing coal fired stations and outdated technology. That stability, Eskom officials say, is creating room to focus on efficiency and affordability rather than crisis management.

The move comes as public pressure mounts over rising electricity tariffs, which government officials have acknowledged are deepening financial strain across the economy.

Minister of Electricity and Energy Kgosientsho Ramokgopa said earlier this month that high electricity prices were making life hard for families, small businesses, and industrial users. He said that the government was taking a number of steps to lower costs and fight energy poverty.

“The rising cost of electricity presents a serious challenge to households, businesses and the broader economy,” Ramokgopa said at the time.

Breakdown recovery brings breathing space

Eric Shunmugam, a senior manager at Eskom, said that the company has come a long way since the peak of the power crisis, when breakdowns often caused the country to go through long periods of load shedding.

He said that equipment failures have gone down a lot compared to past winters, which has made the grid less stressed.

Shunmugam says that the improvement is like taking away almost seven stages of load shedding from the system. Eskom has gone more than 300 days in a row without power cuts that are planned ahead of time. This is a big deal after years of power outages.

“A winter two years ago, we were sitting with breakdowns of about 18 gigawatts,” Shunmugam told broadcaster eNCA. “Right now we are trending around 9,000 megawatts. That means we have recovered close to 7,500 megawatts.”

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