Friday, 4 September 2026: Eskom corrects the materially inaccurate reporting published by Daily Investor on 2 September 2026 under the headline, “Eskom spent billions on diesel to keep the lights on.” The article presents Eskom’s approved FY2026 diesel budget of R12.81 billion as actual expenditure. This is a basic factual error that materially misrepresents Eskom’s financial and operational performance.
Actual expenditure on Open-Cycle Gas Turbines (OCGTs) totalled R7.1 billion, comprising R4.96 billion for Eskom-owned OCGTs and R2.14 billion for Independent Power Producer (IPP) OCGTs. The article therefore reports a figure that Eskom did not spend, while omitting the amount actually incurred.
The facts:
- Actual OCGT expenditure declined from R17.7 billion in FY2025 to R7.1 billion in FY2026, a reduction of R10.6 billion, or approximately 60%.
- Actual expenditure was R5.71 billion below the approved R12.81 billion budget.
- OCGT load factors were 3.9% for Eskom-owned OCGTs and 3.0% for IPP OCGTs, compared with the budget assumption of 5.8%.
These results are consistent with improved generation performance and substantially reduced reliance on costly emergency generation.
During FY2026, Eskom’s Energy Availability Factor (EAF) improved to 65.16%, while the Unplanned Capability Loss Factor (UCLF), which measures generation breakdowns, declined to a six-year low of 22.88%, averaging 10 647MW. Reflecting the improved reliability of the generation fleet, loadshedding was limited to only 26 hours spread across four days during the year, compared with 329 days in FY2024.
The operational and financial outcomes are inseparable. Improved generation performance strengthens energy security and reduces reliance on expensive diesel-fired. These gains were reflected in Eskom’s FY2026 results, including a profit after tax of R30.3 billion. The trajectory has continued into FY2027, with diesel expenditure as of 27 August 2026 82.38% lower than the previous year and the load factor averaging just 1.10%, underscoring the sustainability of Eskom’s operational recovery and disciplined cost management.
The wider economic context is equally important. The Council for Scientific and Industrial Research estimated that loadshedding cost the South African economy up to R2.8 trillion in 2023. Against that background, reporting on diesel expenditure without accurately reflecting the substantial reduction in OCGT costs and loadshedding presents an incomplete and misleading account of Eskom’s performance.
A fair assessment of Eskom’s performance must distinguish between an approved budget and actual expenditure. The article fails that basic test. Eskom remains committed to transparent, fact-based reporting of its operational and financial performance.
ENDS
