Eskom Marks FY 2024 as a Turning Point in Recovery Amid Challenges

“The 2024 financial year is a point of inflection. There’s no turning back, and we’ll only improve from here. That’s the assurance we are giving to the country,” Ramokgopa stated.

The financial year ending March 2024 was a pivotal moment for Eskom, signaling a turnaround for South Africa’s embattled energy utility. Electricity and Energy Minister Dr. Kgosientsho Ramokgopa highlighted this milestone at Eskom’s annual results announcement on Thursday.

“The 2024 financial year is a point of inflection. There’s no turning back, and we’ll only improve from here. That’s the assurance we are giving to the country,” Ramokgopa stated.

Despite the challenges, the year demonstrated signs of progress, offering optimism for Eskom’s future trajectory.

Performance Snapshot

During the 2024 financial year, Eskom faced significant hurdles, including:

329 days of load shedding between April 2023 and March 2024.

Decline in plant availability.

13.9TWh in energy distribution losses.

Worsened emissions performance.

A net loss before tax of R25.5 billion, an improvement from R34.6 billion in the previous year.

A post-tax loss of R55 billion, influenced by a one-time accounting adjustment linked to the separation of the National Transmission Company South Africa (NTCSA).

Steps Toward Recovery

Ramokgopa emphasized that Eskom has made strides in its recovery plan. Over 260 days without load shedding were achieved, plant performance improved, and billions of rands were saved in diesel costs.

“We are taking responsibility for what happened. While the numbers don’t look good, the outlook going forward is positive. We are moving in the right direction, and we can only improve from here,” he asserted.

The Role of the National Transmission Company

The operationalization of NTCSA marked a significant structural change for Eskom. Now a distinct, wholly owned subsidiary, NTCSA manages the country’s national transmission system. Its establishment introduced a once-off accounting adjustment, which contributed to the company’s post-tax loss.

Generation Recovery Plan and Investments

Eskom Group Chief Executive Dan Marokane acknowledged the hardships of the past year but framed it as a foundational period for long-term recovery.

“This was a painful year, but it was also a building year. The Generation Recovery Plan was implemented, focusing on critical maintenance and human resource investment,” Marokane explained.

Government debt relief also began to take effect, providing Eskom with the financial stability needed to execute essential maintenance.

“We own these results. They are part of our journey, and we are confident that the recovery path will become clearer as we add more points to the scoreboard,” he added.

Outlook and Commitment

While challenges remain, Eskom’s leadership expressed confidence in the utility’s recovery trajectory. Ramokgopa and Marokane assured South Africans that efforts to improve reliability, reduce load shedding, and restore financial stability are ongoing.

“The 2024 financial year has set the stage for a brighter future. Eskom remains committed to powering South Africa and rebuilding trust with its citizens,” concluded Ramokgopa.