Eskom Burns Billions on Diesel Amid South Africa’s Pressing Fiscal Challenges

ActionSA is deeply concerned by Eskom’s latest operational update, which reveals that R3.6 billion was spent on diesel in just the past 30 days, with R1.34 billion burned between 1 and 10 April 2025 alone. This runaway diesel spend reveals a harsh truth: South Africa hasn’t ended loadshedding – we’ve simply replaced it with an unaffordable illusion, paid for by the taxpayer.

Instead of being driven by real improvements in plant performance, the recent suspension of loadshedding has been propped up by diesel-powered emergency generation. Eskom’s own data confirms this: while diesel generators keep the grid afloat, the utility’s Energy Availability Factor (EAF) – the key measure of plant performance – remains critically low at just 56.11%. That’s far below the 70% target set by the Minister of Electricity to eliminate loadshedding. This also marks a decline compared to the same period last year, when EAF stood at 58.96%.

This means Eskom has fewer megawatts available now than it did a year ago, yet it is spending more than ever to mask the crisis with diesel. That is not a recovery – it is a cover-up with devastating fiscal consequences.

To illustrate the scale of waste, diesel-fired generation via Eskom’s Open-Cycle Gas Turbines (OCGTs) cost R6,579 per MWh in 2024, compared to R541/MWh for coal and R113/MWh for nuclear. The financial recklessness is staggering — diesel now costs over 12 times more than coal and 58 times more than nuclear. In just one month, Eskom spent R3.6 billion to produce a fraction of the power that could have been generated by fixing coal stations, at a fraction of the cost. If the same power had come from coal, the cost would have been closer to R300 million.

All of this is happening while the country faces a budget impasse, with ordinary South Africans expected to pay more tax while government mismanagement, corruption and waste remain unchecked. Eskom’s diesel habit is not just unaffordable, but robbing South Africans of resources that should be going to education, policing, clinics, and infrastructure.

ActionSA demands that:

1. The Minister of Electricity stop misleading the public about the causes of temporary supply stability.

2. Government publish a weekly dashboard detailing EAF, diesel spend, and OCGT output.

3. Eskom provide a credible and time-bound recovery plan for coal station performance. Vague commitments can no longer be tolerated.

Eskom is burning billions, and the people of South Africa are being burned in the process. ActionSA will continue to hold those in government accountable and advocate for solutions that prioritise transparency, efficiency, and the safeguarding of public funds.

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