ESKOM’S DIESEL CONSUMPTION STARKLY REVEALS CONTINUING SLIDE

2 July 2022

Eskom used 27 times the amount of diesel in the first five months this year than it used in the whole 2016/2017 financial year, at the height of state capture.

Replying to written questions by GOOD MP Brett Herron, Minister of Public Enterprises Pravin Gordhan said 273 million litres were consumed at Eskom’s Ankerlig and Gourikwa OCGTs between January and May this year.

This staggering number excludes yesterday’s revelation by Eskom’s CEO that the company spent another R1.54 billion on diesel in June 2022, alone. If you add that to the R3.84 billion Gordhan said had been spent in the first five months of the year, it means Eskom burned R5.3 billion worth of diesel in the first half of the year.

Two years ago, Gordhan revealed that the power utility consumed 10 million litres of diesel in 2016/2017 to keep its open cycle gas turbines running. The cost of diesel to the country was R340 million in the 2016/2017 financial year, and R320 million in 2017/2018.

To put these numbers in perspective, that’s R320-R340 million five and six years ago compared to R5 300 million in the first six months of this year.

Eskom’s dependence on burning diesel was laid bare at yesterday’s briefing by its executives, with its ability to procure enough diesel stock evidently regarded among its key performance indicators.

According to Gordhan’s answers to Herron’s questions, Eskom consumed 571 million litres of diesel in the 2021/2022 financial year at a accost of R6.4 billion.

Gordhan said Eskom implemented 50 days of loadshedding from 1 January to 2 June this year – that’s approximately 33% of days affected.

The production of renewable energy in South Africa must be accelerated.

But there is a payoff between the speed at which renewables can be added to the supply, against the scale of the supply.  If we don’t act smartly we will be in for decades more debilitating blackouts.

By way of example of what can be achieved, the World Economic Forum points to Vietnam having added solar power, with the capacity to generate the equivalence of 6 coal power stations, to their supply in 2020. In 2020 Vietnam built its largest solar energy farm, which supplies 1 billion kilowatt hours of electricity a year, in just 5 months. 

With political dexterity and leadership, and by reaching out to our allies and trading partners (like BRICS) for assistance with skills and technologies, we can add urgently needed supply and get our existing fleet maintenance and repairs addressed while implementing our longer-term sustainable vision.

*Please find below the written reply from the Minister of Public Enterprises:

DEPARTMENT: PUBLIC ENTERPRISES REPUBLIC OF SOUTH AFRICA

NATIONAL ASSEMBLY QUESTION FOR WRITTEN REPLY

QUESTION NO.: PQ 2148

QUESTION:

2148. Mr B N Herron (Good) to ask the Minister of Public Enterprises:

(a)(i) How many litres of diesel did Eskom use for the purposes of power and/or electricity generation in the 2021-22 financial year and (ii) what was the total cost of that diesel consumption, (b) what total number of days in the current calendar year since 1 January 2022 has Eskom implemented load shedding and (c)(i) how many litres of diesel has Eskom used to generate power and/or electricity in this calendar year since 1 January 2022 and (ii) what is the total cost of that diesel consumption?

REPLY:

According to the information received from Eskom:

(a)(i) In the 2021/22 financial year, 571 295 617 litres of diesel were burnt. (a)(ii) The total cost of diesel consumption was R 6 407 million.

(b) Eskom implemented loadshedding for 50 days from 1 January 2022 to 2 June 2022. Five (5) days were at Stage 1; 35 days were at Stage 2; four (4) days were at Stage 3; and six (6) days were at Stage 4.

(c ) (i) The amount of diesel consumed at Eskom’s Ankerlig and Gourikwa OCGTs, as well as the associated cost for the current year, 2022 (January to May) is 272 911 112 litres consumed.

(c ) (ii) The total cost of the diesel consumption from January to May 2022 is R 3 843 million.

ENDS

Statement issued by Brett Herron, GOOD: Secretary-General & Member of Parliament, 2 July 2022