Since its establishment in the 6th administration, and its continuation in the 7th administration, the Ministry of Electricity and Energy, working with Social Partners through NECOM and the Board and Executive Management of ESKOM, has implemented a comprehensive strategy to address the energy crisis. This strategy focuses on immediate interventions to improve power generation performance and long-term structural reforms to ensure a stable and affordable electricity supply.
Since March 2024, significant strides have been made in stabilising Eskom's generation fleet. Although two set-backs were experienced in January and February 2025, a continuous electricity supply has been maintained for 99% of the time, during this period, in contrast to just 10% for the same period in the previous year. By January 2025, breakdown levels improved substantially, averaging below 12,000 MW, a marked improvement compared to the 14,000 MW - 18,000 MW breakdown levels observed in the previous year.
Year-to-date diesel savings amount to R16.54 billion, reflecting a 59.7% reduction compared to R27.68 billion spent in the same period last year. This reduction results from decreased reliance on costly Open Cycle Gas Turbines (OCGTs) Eskom's Energy Availability Factor (EAF) has improved to 61.56%, a 6.8% increase compared to the same period last year, reducing the risk of supply disruptions.
Reduction in Unplanned Capacity Loss Factor (UCLF)
The Unplanned Capacity Loss Factor (UCLF) is at 25.38% for the financial year to date (1 April 2024 to 06 February 2025), improving from 32.58% in the corresponding period last year. This reduction in UCLF represents a -7.2% improvement compared to the same period last year.
Planned Capacity Loss Factor (PCLF)
The ongoing planned maintenance at 7 183MW, aligns with our summer maintenance strategy, which aims to further improve reliability in preparation for Winter 2025 and beyond.
Addressing Rising Electricity Costs Through Efficiency and Alternative Energy Sources
The Government acknowledges the financial strain on consumers and businesses due to the 12.7% electricity tariff increase effective April 2025. However, this adjustment is part of a broader effort to stabilise Eskom's financial sustainability while implementing cost-saving efficiencies to mitigate the impact of rising electricity costs.
Whilst the Free Basic Electricity (FBE) programme remains in place, providing relief to indigent households, the Ministry is working on policy proposals to increase the quantum of FBS as well as a more targeted approach to apply the relief measure.
In partnership with ESKOM, under the Active Partnering Programme, municipal debt relief measures are being implemented to enhance financial stability in the distribution sector, ensuring continued access to electricity for local communities.
Beyond immediate interventions, the Government is driving structural reforms to enhance efficiency and competition in the electricity market, which will help curb future cost escalations. These include:
- Eskom's unbundling into separate Generation, Transmission, and Distribution entities, will improve market transparency and efficiency.
- The implementation of the Electricity Regulation Amendment Act, will enable an open and competitive electricity market, reducing the cost burden on Eskom and introducing cost-effective independent power producers (IPPs).
- Expanded demand-side management programmes, promoting energy efficiency to lower consumption costs for businesses and households.
Through these interventions, we are making measurable progress in stabilising the grid, improving Eskom's financial health, and reducing long-term electricity costs for all South Africans.
(2) The subject matter of the question does not address itself to matter(s) under the competency of the Minister of Electricity and Energy. The Honourable Member is advised to redirect the question appropriately