Big reason for Eskom load-shedding reprieve

A big reason for Eskom’s improved performance is that it uses equipment manufacturers (OEMs) instead of smaller BEE (black economic empowerment) firms for maintenance.

On Friday, Eskom announced that load-shedding remained suspended and delivered 149 consecutive days of uninterrupted power supply.

Eskom has maintained a constant electricity supply throughout its winter, with no load-shedding since its current financial year started on 1 April 2024.

The success is a result of its Generation Operational Recovery Plan, which commenced in March 2023.

The recovery plan continues to enhance Eskom’s efficiencies and deliver a structural shift in fleet performance.

From 1 April 2024 to 22 August 2024, Eskom reduced diesel expenditure by R10.60 billion. It is 75% lower than the same period last year.

Over the past seven days, Eskom maintained an average energy availability factor (EAF) of 68%. The best-performing stations achieved an EAF above 70%.

Eskom credited three things for its improved performance.

• The continued benefits of accelerating and executing planned maintenance.
• Partnering with the original equipment manufacturers (OEMs) for maintenance.
• The dedication of power station managers and their teams.

This has helped to reduce unplanned outages well below the 2024 winter forecast, which has helped stop load-shedding.

Over the past seven days, unplanned outages have averaged between 9,800MW and 10,900MW, much lower than the anticipated 15,500MW.

The Unplanned Capacity Loss Factor (UCLF) continues to be on a downward trend at 25.7% for the financial year to date.

This is a nine-percentage-point improvement from the 34.65% in the corresponding period last year.

Unplanned outages of the generation units averaged 10,557MW during the past seven days, compared to 16,060MW in the corresponding week last year.

Eskom will announce its outlook for the summer period, from 1 September 2024 to 31 March 2025, on Monday, 26 August 2024.

The secret to Eskom’s success

Eskom chairman Mteto Nyati explained that the company’s new maintenance plan differed from previous plans because it partnered with original equipment manufacturers (OEMs).

“When we take a plant down, we work with people with deep expertise about the equipment used at that plant,” he said.

Previously, maintenance was done by people with limited or no understanding of the equipment at the plants.

Simply put, Eskom replaced smaller BEE (black economic empowerment) firms with OEMs to ensure proper maintenance.

The results were excellent. Within a year, Eskom was able to stop load-shedding for over 150 consecutive days.

Professor Hartmut Winkler from the University of Johannesburg said many small empowerment firms used Eskom to generate quick money.

Many of these BEE firms were not held accountable for doing shoddy work, which resulted in breakdowns soon after the maintenance was completed.

Even more concerning is that it benefitted small firms when breakdowns occurred as they would get more work.

“In the past, there was an incentive for smaller BEE firms who did maintenance for power stations to have frequent breakdowns,” Winkler explained.

Frequent breakdowns meant that many companies got more work. This, in turn, bolstered their income.

In some cases, rogue companies sabotaged power plants to create breakdowns and get more work and money from Eskom.

This no longer happens. The new service level agreements with original equipment manufacturers have clauses which punish poor workmanship and breakdowns.

If a breakdown occurs within a stipulated period after maintenance, they must fix the problem for free. This incentivised proper maintenance from the start.