KEY POINTS
- Diesel spending fell 80.56% to R1.16bn.
- Power availability hit a six-year high of 68.06%.
- South Africa recorded 497 days without load-shedding.
South Africa’s state-owned electricity utility, Eskom, has sharply reduced its reliance on expensive diesel generators as the country’s electricity supply system continues to improve.
Eskom spent R1.16 billion on diesel between April 1 and September 24, 2026, representing an 80.56% decline from the R5.94 billion spent during the same period a year earlier.
The reduction reflects improved performance across Eskom’s power stations, particularly its ageing coal-fired plants, which generate most of South Africa’s electricity. The utility has historically relied on open-cycle gas turbines (OCGTs), which run on diesel, when its main generating fleet could not meet demand.
Eskom said the amount of electricity generated by its diesel-fired OCGTs fell significantly during the period.
The turbines recorded a load factor of just 1.05%, compared with 6.97% a year earlier. Their electricity output also dropped 84.92% year-on-year to 151.14 gigawatt-hours.
The lower use of emergency generators has helped the utility save R4.78 billion, or about $291 million, in diesel costs over the period.
The decline follows an even larger reduction recorded earlier in September. Eskom said diesel expenditure had fallen 81.64% to R1.08 billion between April 1 and September 3, compared with the same period in the previous financial year.
The utility’s annual diesel spending has also fallen substantially over the longer term, declining by R23 billion between the financial years ended March 2023 and March 2026.
Power station availability reaches six-year
Eskom’s improved financial position on emergency fuel use is closely linked to stronger power station performance.
The utility’s year-to-date Energy Availability Factor (EAF) reached 68.06% as of September 25, its highest level in six years. The EAF measures the proportion of Eskom’s generating capacity that is available to produce electricity.
Weekly availability was even higher, reaching 70.44% between September 18 and 24. Eskom said the improvement represented about 6,461 megawatts of additional capacity compared with three years ago.
Higher availability means Eskom can meet electricity demand with its main generating fleet instead of frequently turning to expensive diesel-fired backup plants.
The improved generation performance has also helped South Africa maintain a prolonged period without nationwide load-shedding.
Eskom said the country had reached 497 consecutive days without load-shedding as of September 25. The current period began on May 16, 2025.
The development marks a significant change from the severe power shortages that affected households and businesses in previous years, when repeated breakdowns at coal-fired stations forced Eskom to introduce scheduled electricity cuts.
However, some customers still experience what Eskom calls load reduction. These are planned local electricity interruptions used to protect distribution networks from overloading.
About 247,617 customers, representing 3.4% of Eskom’s customer base, remained affected by load reduction in Gauteng and KwaZulu-Natal. Eskom has said it aims to eliminate load reduction by March 2027. Despite the reduction in Eskom’s fuel costs, electricity prices in South Africa are still expected to rise.
The National Energy Regulator of South Africa, Nersa, has approved an average Eskom tariff increase of 8.83% from April 2027.
The increase forms part of a multi-year tariff decision approved by the regulator. Nersa is currently consulting on how the 2027 increase should be structured, with public comments due by October 2, 2026.
Eskom had initially sought a much larger 36% tariff increase from April 2025, but Nersa approved a lower increase of 12.74%.
The regulator subsequently approved increases of 8.76% for 2026 and 8.83% for 2027, following a correction to its calculations.
