Eskom – Why it could get worse

The performance of Eskom has been in decline for some time, but the recent deterioration in the past few months is particularly concerning.

Despite low electricity demand in the first weeks of January, Eskom implemented Stage 6 load shedding.
It is likely that the energy crisis will worsen in the future with higher stages of load shedding being possible.
The company’s management strategies since 2018, particularly an emphasis on staff costs, have accelerated its decline.

Eskom has lost a significant amount of skilled and experienced staff due to resignations and retirements and has been unable to attract younger workers to fill the void.
The company’s dependence on diesel fuel for power generation is also a concern, as the country is vulnerable to import supply disruption.

Outsourcing the running of the 15 coal-fired power stations to high-performing international coal-powered energy companies is proposed as a solution, as it would restore reliable electricity generation without privatizing the company.