{"id":823448,"date":"2025-05-08T09:40:25","date_gmt":"2025-05-08T07:40:25","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=823448"},"modified":"2025-05-08T09:40:38","modified_gmt":"2025-05-08T07:40:38","slug":"eskom-celebrates-despite-missing-targets-that-caused-load-shedding","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/energy\/823448\/eskom-celebrates-despite-missing-targets-that-caused-load-shedding\/","title":{"rendered":"Eskom celebrates despite missing targets that caused load-shedding"},"content":{"rendered":"\n

Eskom celebrated its excellent performance, despite missing its own targets by a considerable margin, which means that South Africans will have to endure load-shedding for longer.<\/p>\n\n\n\n

Over the last three years, Eskom has repeatedly published its target of reaching an energy availability factor (EAF) of 70%, which would end load-shedding.<\/p>\n\n\n\n

The energy availability factor (EAF) represents the percentage of time the power station was available for use when needed, serving as a core measure of performance.<\/p>\n\n\n\n

Eskom stated that if its EAF improved to around 70%, load-shedding would be a thing of the past, and South Africa would achieve electricity security.<\/p>\n\n\n\n

In October 2022, the Eskom board and former Public Enterprises Minister Pravin Gordhan unveiled its EAF targets for the next three years.<\/p>\n\n\n\n

They set an energy availability factor target of 60% by March 2023, 65% by March 2024, and 70% by March 2025.<\/p>\n\n\n\n

On 22 January 2023, former Eskom chair Mpho Makwana said they had embarked on a turnaround journey to improve plant performance and reduce load-shedding.<\/p>\n\n\n\n

\u201cIt will take at least two years to improve the energy availability factor from the current 58% to 70%,\u201d Makwana said at the time.<\/p>\n\n\n\n

In October 2024, Eskom reiterated that it remains focused on achieving financial and operational sustainability by implementing ongoing structural improvements.<\/p>\n\n\n\n

\u201cThe target is to reach a 70% EAF by March 2025, which will not only ensure a stable energy supply but also reduce diesel expenditure,\u201d it said.<\/p>\n\n\n\n

Eskom Chairman Mteto Nyati also stated that their Generation Recovery Plan would be completed by 31 March 2025, marking the end of load shedding.<\/p>\n\n\n\n

\u201cAt the end of March 2025, that\u2019s when the plan should have been executed,\u201d Nyati said earlier this year.<\/p>\n\n\n\n

\u201cAt the end of that plan is when we can come back, the Minister, myself, and the CEO, and communicate to South Africa that there\u2019s not going to be load-shedding.\u201d<\/p>\n\n\n\n

These were clear targets for Eskom and its leadership team, which was easy for South Africans to track and see whether the power utility met them.<\/p>\n\n\n\n

\"\"<\/a>
Eskom chairman Mteto Nyati<\/figcaption><\/figure>\n\n\n\n

Eskom missed its own targets by a large margin<\/h2>\n\n\n\n

Eskom\u2019s March 2025 deadline to complete its Generation Recovery Plan and reach its 70% EAF target has arrived. However, it missed both targets.<\/p>\n\n\n\n

Eskom announced that the year-to-date energy availability factor (EAF) is 56.43%, down slightly from 58.30% during the same period last year.<\/p>\n\n\n\n

This indicates that it had not even met the first planned target for March 2023, which was a 60% energy availability factor.<\/p>\n\n\n\n

This means that load-shedding remains a reality in South Africa and can occur at short notice, as recent weeks have demonstrated.<\/p>\n\n\n\n

Eskom also did not conclude its Generation Recovery Plan by 31 March 2025 as initially scheduled. Several key projects are still underway.<\/p>\n\n\n\n

These include the return to service of Medupi Unit 4, the restoration of Kusile Unit 1, the return of Koeberg Unit1, and the commercial operation of Kusile Unit 6.<\/p>\n\n\n\n

Collectively, these projects will increase available generation capacity by approximately 2 500MW, a significant milestone toward system recovery.<\/p>\n\n\n\n

\u201cAny formal announcement on the end of load-shedding will only follow once the power system demonstrates consistent, long-term stability,\u201d Eskom said.<\/p>\n\n\n\n

During Eskom\u2019s 2025 Winter Outlook briefing, Nyati admitted that the power utility did not meet expectations.<\/p>\n\n\n\n

\u201cWe have not been proud of how we have performed. A few metrics showed that things did not align with what we were capable of doing,\u201d he said.<\/p>\n\n\n\n

The problems included power plant reliability, a delay in returning generation units to service, and issues with its coal supply.<\/p>\n\n\n\n

He said the Eskom board and executive team discussed the problems. \u201cWe spend a lot of time establishing the root causes of the problems,\u201d he said.<\/p>\n\n\n\n

They have learned that Eskom does not have equipment issues. Instead, the problems centre around its employees.<\/p>\n\n\n\n

\u201cIt is mainly leadership-related. We have to make sure they follow standard operating procedures and we hold people accountable,\u201d he said.<\/p>\n\n\n\n

The table and charts below display Eskom\u2019s official EAF targets and its performance against these targets.<\/p>\n\n\n\n

Year<\/strong><\/td>EAF<\/strong><\/td>Target<\/strong><\/td><\/tr>
2023<\/strong> (FY)<\/td>52.6%<\/td>-7.4%<\/mark><\/strong><\/td><\/tr>
2024<\/strong> (FY)<\/td>60.8%<\/td>-4.2%<\/mark><\/strong><\/td><\/tr>
2025<\/strong> (YTD)<\/td>56.7%<\/td>-13.3%<\/mark><\/strong><\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n
\"\"<\/a><\/figure>\n\n\n\n

Eskom celebrates despite missed targets<\/h2>\n\n\n\n

Eskom chairman Mteto Nyati said<\/a> South Africa was regressing because, as a society, we tolerate poor leadership in schools, universities, clinics, hospitals, municipalities and SOEs.<\/p>\n\n\n\n

\u201cInstead of holding our leaders accountable, we worship them. Respect must be earned,\u201d Nyati said in a post on X.<\/p>\n\n\n\n

He reiterated the call during Eskom\u2019s 2025 Winter Outlook briefing, saying leaders have to be held accountable for poor performance.<\/p>\n\n\n\n

One would assume that Nyati and the rest of the Eskom board would be deeply disappointed by their poor performance and act on their call to hold leadership accountable.<\/p>\n\n\n\n

Surprisingly, this was not the case. Instead of Eskom\u2019s leadership facing the music for the missed targets, Nyati said they were celebrating their success.<\/p>\n\n\n\n

Nyati told MyBroadband<\/a> that the Eskom board\u2019s targets were aimed at to improve operational performance year on year and also stretch the team to reach beyond their reach.<\/p>\n\n\n\n

\u201cIn the last financial year, Eskom has significantly improved year on year across operational, financial and sustainability metrics,\u201d Nyati told MyBroadband.<\/p>\n\n\n\n

\u201cThe fact that they missed some stretch targets does not mean that they have performed poorly,\u201d he added.<\/p>\n\n\n\n

He said Eskom\u2019s leadership may lose some performance-based incentives, but is being celebrated internally for positioning Eskom in a much better place.<\/p>\n\n\n\n

\u201cIt is a process of continuous improvement. As a board, we are proud of what Eskom management has achieved in the last financial year,\u201d he said.<\/p>\n\n\n\n

\u201cFor the first time in years, Eskom will post a profit on the back of an improved operational performance, i.e. reduced loadshedding and diesel usage. That is a major step forward.\u201d<\/p>\n\n\n\n

Interestingly, this appears to be in stark contrast to Nyati\u2019s call for holding leaders at state-owned enterprises accountable.<\/p>\n\n\n\n

If leadership is celebrated despite missing concrete targets, it sends a message that they will not be held to these targets. Therefore, missing them is acceptable.<\/p>\n\n\n\n

Over the past two decades, every Eskom CEO has claimed that they performed exceptionally well, while many missed their performance targets.<\/p>\n\n\n\n

This behaviour is now perpetuated until the new Eskom board and management team, which does not bode well for the power utility.<\/p>\n","protected":false},"excerpt":{"rendered":"

Eskom celebrated its excellent performance, despite missing its own targets by a considerable margin, which means that South Africans will have to endure load-shedding for longer.<\/p>\n","protected":false},"author":10,"featured_media":779405,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9874],"tags":[22484,1164,1887,22483],"class_list":["post-823448","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","tag-energy-availability-factor-eaf","tag-eskom","tag-mteto-nyati","tag-public-enterprises-minister-pravin-gordhan"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/823448","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=823448"}],"version-history":[{"count":2,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/823448\/revisions"}],"predecessor-version":[{"id":823451,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/823448\/revisions\/823451"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/779405"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=823448"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=823448"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=823448"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}