Eskom, on Thursday, unveiled its annual report for the financial year ending March 2024, which paints a mixed picture of financial strain, operational challenges, and subsequent recovery efforts.
Eskom’s 2024 report: A year of turmoil and recovery
For the 2024 financial year, Eskom faced dire circumstances, including a record-breaking 329 days of loadshedding and an Energy Availability Factor (EAF) that dipped to 54.56%.
Financially, the company recorded an after-tax loss of R55 billion, partly due to a deferred tax asset adjustment.
Municipal arrears reached a staggering R74.4 billion, escalating from R58.5 billion the year before. Despite these setbacks, revenue grew by 14% to R295.8 billion, driven by a significant tariff increase of 18.65%.
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Eskom’s lifeline came in the form of an R76 billion government debt relief package, converted into equity to stabilise the utility’s finances.
This intervention enabled Eskom to implement critical improvements, including the Generation Recovery Plan launched in March 2023.
By December 2024, these efforts culminated in a remarkable milestone: 261 consecutive days without loadshedding.
The EAF rebounded to 62.97%, significantly reducing the utility’s reliance on costly diesel, which contributed to a year-on-year savings of R11.9 billion.
Looking ahead, Eskom forecasts an after-tax profit exceeding R10 billion for the 2025 financial year, a stark departure from the losses of previous years.
Strategic reforms, such as the legal separation of the Transmission Division (completed in July 2024), and a focus on renewable energy projects further underscore the utility’s commitment to long-term sustainability.
However, energy analysts have raised concerns about the sustainability of these gains, warning that loadshedding could return as early as January 2025.
This caution stems from the increased demand typically observed in the post-holiday period, combined with the risks posed by Eskom’s ageing infrastructure.
While the utility’s August 2024 Summer Outlook had projected a stable electricity supply through March 2025, experts emphasise the narrow margins for error.
Recent incidents, such as the rupture of a steam pipe at Matla Power Station, have spotlighted vulnerabilities in Eskom’s coal-fired fleet.
Although unplanned outages have been reduced to 12,486MW—down by over 1,300MW compared to the same period last year—these improvements remain precarious.
Municipal debt, now exceeding R74 billion, continues to strain Eskom’s financial recovery, and the utility’s ability to sustain its progress will be tested in the months to come.
