Government seeking funds so Eskom can buy diesel

Since the start of loadshedding in 2007, things have gotten progressively worse. With the country currently in stages 2 and 4, there is a risk of higher levels of loadshedding in the coming months as Eskom’s diesel budget is depleted. This was revealed in a statement issued by the Department of Public Enterprises (DPE) on Sunday, November 20.

On Sunday evening, Minister of Public Enterprises, Pravin Gordhan, met with Eskom Board members led by Chairperson Mpho Makwana. The Department is urgently working with the National Treasury and Eskom to secure funds to purchase diesel supplies.

The initial diesel budget for Eskom’s current fiscal year, which ends on March 31, 2023, was R6.1 billion, but it was later revised to R11.1 billion. Eskom has already spent R12 billion over budget.

The recent rolling blackouts have forced Eskom to burn more diesel in its open-cycle gas turbines (OCGTs), to the point where the power utility has run out of funds to purchase more diesel.

The DPE stated in a statement that they will work with Eskom to find savings within the existing Eskom funds for the ongoing purchase of diesel and maintenance.

“The assessment of the Board on the challenges Eskom faces in current fleet of power stations and exceptional interventions that must be made to create more reliability in the performance of power stations,” said the statement.

Furthermore, the government made an urgent request for the assistance of all law enforcement agencies in putting an end to local level disruptions and criminal activities affecting power plants.

The Department also stated that they will work with Eskom to ensure that officials are constantly aware of the importance of a reliable electricity system to the economic and social well-being of all South Africans.

Energy analyst and electrical engineer, Chris Yelland confirmed on social media that he spoke with an Eskom spokesperson who confirmed that the diesel had physically run out. He also revealed that diesel for the OCGTs will be replenished until the end of the fiscal year on April 1 or until they receive additional funds to purchase diesel.

As the government scrambles for funds to enable Eskom to purchase diesel, people’s fears of spending the holiday season in the dark are confirmed. Businesses and the economy have suffered as a result of load shedding. You have to wonder where the government will get these funds.