Eskom, South Africa's primary electricity supplier, has significantly reduced its diesel spending by nearly 81% since the steep fuel price increases in April 2026. The utility's expenditure on diesel dropped from R5.93bn to R1.13bn between April 1 and September 17, compared to the same period last year. This reduction is attributed to the increased availability of coal-fired power stations and a decrease in the use of open-cycle gas turbines (OCGTs) during periods of strain.
The reduction in diesel consumption is a result of Eskom's efforts to limit its exposure to rising fuel costs. Group CEO Dan Marokane stated that consumption had been reduced drastically due to higher availability of coal-fired power stations. Eskom aims to sustain low levels of diesel usage to mitigate the impact of increasing fuel prices. The company's strategy is crucial in stabilizing the grid during periods of strain.
The global oil supply has been affected by the US war against Iran, leading to a surge in fuel prices. Since the Middle East conflict broke out in late February, the wholesale price of diesel has soared more than 58% to R29.31/l. This increase has significant implications for Eskom's operations and the overall energy sector in South Africa.
Eskom's OCGT use has remained minimal over the past week, with the company reporting that OCGT generation has remained at 146.81GWh, approximately 85.33% lower than the corresponding period last year. The continued low utilization of OCGTs reflects improved fleet performance and reduced reliance on diesel-fired generation to meet electricity demand.
The utility's energy availability factor (EAF) has improved to 67.96%, the highest in six years. This was driven by a 6.92% improvement in unplanned outages to 19.23% and the return of about 3,100MW of generation capacity to the grid. The improvement in EAF is a result of more disciplined maintenance of Eskom's fleet, resulting in fewer breakdowns at its stations.
South Africa's energy security has been strengthened by Eskom's progress in improving its generation fleet. The country has now gone 490 days without load-shedding, since May 2025, reflecting the cumulative impact of improved fleet performance, lower unplanned outages, increased generation capacity, and reduced reliance on emergency generation resources.
Eskom supplies about 90% of South Africa's electricity, with approximately 80% of it being coal-fired. The government has emphasized the importance of coal in the country's energy mix, citing its role as a key driver of electricity production in developing nations. However, environmental groups continue to push for a transition to cleaner energy sources.
Key points
- Eskom reduces diesel expenditure by R4.8bn amid fuel price spikes.
- The company's energy availability factor (EAF) improves to 67.96%, the highest in six years.
- South Africa has gone 490 days without load-shedding, reflecting improved energy security.
