Eskom has spent R469.24 million on diesel since the start of the 2026 financial year on 1 April, the power utility revealed on Friday, as it continues to rely on its open-cycle gas turbines (OCGTs) to keep the national grid stable during peak demand periods. The expenditure, while substantial, marks a dramatic improvement from the same period last year, when the utility burned through more than five times that amount – over R2.5 billion – in just six weeks.
The update came as Eskom provided a snapshot of the state of the grid heading into the winter months, with colder weather last week pushing evening electricity demand 2,000 megawatts higher than expected. Despite the unexpected surge, the utility managed to avoid load-shedding, a feat that would have seemed impossible just 12 months ago.
“While any expenditure of this magnitude is significant, the trend line is very encouraging,” said Eskom spokesperson Daphne Mokoena during a virtual media briefing. “We are burning far less diesel than we were at this time last year. That is a direct result of improved generation fleet performance, lower unplanned breakdowns, and the return to service of several units that had been out of action for extended periods.”
The Diesel Conundrum: A Necessary Evil
Eskom’s open-cycle gas turbines – located at Ankerlig in the Western Cape, Gourikwa in the Southern Cape, and several smaller facilities – are designed as peaking plants, meant to be switched on during periods of high demand or sudden generation shortfalls. However, during the worst years of load-shedding, the utility was forced to run these turbines almost continuously, burning through hundreds of millions of rands of diesel each month.
The turbines are extremely expensive to operate. OCGTs have an average fuel cost of roughly R7 to R10 per kilowatt-hour (kWh), compared to coal-fired generation which costs approximately R0.70 to R1.20 per kWh. Running a single OCGT at full capacity for one hour can consume over 30,000 litres of diesel, costing upwards of R1 million per hour depending on prevailing fuel prices.
In the 2023/24 financial year, Eskom spent a staggering R18.3 billion on diesel – an amount that drew sharp criticism from the National Treasury, Parliament, and civil society. That spending was a major factor behind the utility’s mounting losses and its dependence on government bailouts.
By the Numbers: 2026 vs. 2025
The contrast between this year’s diesel spend and last year’s is stark. According to Eskom, between 1 April and 9 May 2025, the utility spent R2.53 billion on diesel – an average of roughly R65 million per day. During the same period in 2026, the spend was R469.24 million – an average of roughly R12 million per day.
That represents a reduction of over 81%.
“We have gone from burning diesel as a primary fuel source to using it as a true peaking resource – exactly as it was designed to be used,” said Eskom’s Group Executive for Generation, Bheki Nxumalo. “The turbines are still critical. They are the shock absorbers of the grid. But they are no longer the engine.”
Unplanned Breakdowns Stay Below Danger Mark
A key factor in the reduced diesel usage has been the sustained improvement in Eskom’s coal-fired generation fleet. The utility reported that unplanned breakdowns – known in the industry as the Unplanned Capacity Loss Factor (UCLF) – have remained consistently below the 12,000-megawatt danger mark throughout April and the first week of May.
As of Friday morning, unplanned outages stood at 11,450 megawatts, well within the range that Eskom considers manageable. By contrast, during the same period last year, unplanned breakdowns frequently exceeded 16,000 megawatts, leaving the utility with little choice but to burn diesel and implement load-shedding.
“We have turned a corner,” Nxumalo said. “It is not a straight line – we still have bad days, bad weeks. But the trajectory is unmistakable. The generation fleet is more reliable than it has been in half a decade.”
Eskom attributed the improved performance to several factors:
- The return of Kusile Units 1, 2, and 3Â after extensive flue gas desulphurization repairs, adding 2,100 megawatts of reliable capacity.
- Reduced vandalism and theft at power stations, particularly at Camden, Majuba, and Tutuka, where security has been beefed up.
- Better maintenance regimes, including longer planned outage windows that have reduced the need for emergency repairs.
- Improved coal quality at several stations, particularly Medupi and Lethabo, following interventions by coal suppliers.
Cold Weather Tests the System
The improving trends were put to the test last week when an unseasonably cold front swept across much of the country, pushing evening peak demand significantly higher than Eskom’s forecast models had predicted.
“We anticipated peak demand of around 30,500 megawatts for the first week of May,” Mokoena explained. “What we actually saw was peak demand of 32,500 megawatts on Wednesday evening. That 2,000-megawatt difference is substantial. In previous years, that difference would almost certainly have triggered load-shedding.”
Instead, Eskom’s system operators responded by bringing one of the OCGT units online at Gourikwa and drawing on pumped-storage hydro from the Drakensberg Pumped Storage Scheme. The combination was enough to meet demand without resorting to rotational power cuts.
“It was a good test of the system,” Nxumalo admitted. “We passed. But we cannot be complacent. Winter has not even properly started. July and August are historically the most demanding months.”
Diesel Costs: A Modest Increase Projected
Despite the reduced diesel usage, Eskom’s overall diesel budget for the 2026/27 financial year has increased slightly – from R6.8 billion to R7.2 billion – due to higher global diesel prices. The utility buys diesel in large volumes through a competitive tendering process, but remains exposed to fluctuations in the international oil price.
“We are burning less but paying more per litre,” Mokoena said. “That is the reality of global energy markets. However, we are currently tracking well below our budgeted diesel expenditure for this period. If current trends continue, we could end the financial year significantly under budget – something that would have been unthinkable two years ago.”
The Bigger Picture: Where Does Eskom Stand?
The reduced diesel spend is just one indicator of a broader recovery at Eskom. Other positive signs include:
- Energy Availability Factor (EAF) – the percentage of installed capacity actually available to generate – has averaged 62% in 2026, up from 53% in 2024 and 58% in 2025.
- Load-shedding – There has been no load-shedding since 26 March 2026, marking the longest streak without power cuts in over 18 months.
- Debt trajectory – Eskom has made progress on its R423 billion debt pile, though the utility remains heavily reliant on government support.
However, significant challenges remain. The utility’s transmission grid – particularly in the Eastern Cape and Western Cape – remains constrained, limiting the integration of renewable energy. Several coal-fired units remain in poor condition, despite maintenance interventions. And the ongoing crisis of vandalism and cable theft continues to undermine distribution infrastructure in many areas.
“We are on a better path,” said energy analyst Chris Yelland. “But let’s not break out the champagne. Eskom still has structural problems that go beyond diesel spend. The tariff increases that will be needed to make the utility sustainable will be painful for households and businesses. And the transition away from coal – while necessary – is not yet properly planned or funded.”
Political Reaction: Cautious Optimism
The update was received with cautious optimism in political circles. Electricity Minister Kgosientsho Ramokgopa welcomed the reduced diesel expenditure but warned against premature celebration.
“The reduced reliance on diesel is a positive development, but we are not yet out of the woods,” Ramokgopa said in a brief statement. “We must continue to focus on improving the underlying performance of the coal fleet, accelerating the maintenance backlog, and expanding grid capacity. The progress is real. But it must be sustained.”
Opposition parties were more measured. The Democratic Alliance’s shadow energy minister, Kevin Mileham, noted: “R469 million in six weeks is still an enormous amount of money. That is nearly R500 million that could have been spent on health, education, or police. It is not a success story. It is a less catastrophic story.”
The Economic Freedom Fighters, meanwhile, returned to its longstanding demand for the scrapping of independent power producer contracts, which it argues have unnecessarily increased electricity costs. “Eskom should have spent zero rands on diesel if the coal fleet was properly run,” said an EFF spokesperson. “The problem is not the diesel. The problem is management. And management is still failing.”
What to Expect This Winter
Looking ahead, Eskom has advised South Africans to prepare for a winter with minimal load-shedding but cautioned that the grid remains vulnerable, particularly during cold snaps and when generation units unexpectedly trip offline.
“We cannot promise zero load-shedding,” Mokoena said. “What we can promise is that we will be transparent about risks, that we will use diesel responsibly, and that we will prioritize keeping the lights on during the most critical hours – mornings and evenings.”
The utility has stockpiled 85 million litres of diesel across its OCGT facilities, sufficient to run the turbines for approximately 200 hours at full load. It has also secured additional supply agreements with Sasol and several fuel importers to ensure replenishment during periods of heavy use.
“The diesel is there if we need it,” Nxumalo said. “But we hope not to need it. The plan is to keep the coal fleet running, keep breakdowns low, and save the diesel for genuine emergencies. That is the plan. And right now, the plan is working.”
Conclusion: From Crisis to Caution
The R469 million spent on diesel since 1 April 2026 is not a small amount of money. By any measure, it is a substantial sum – the kind that could fund hundreds of new classrooms, thousands of police officers, or millions of social grants. But compared to the R2.5 billion burned through in the same period last year, the reduction represents one of the most tangible signs of improvement at Eskom in years.
For ordinary South Africans, the meaning is simple: fewer nights in the dark, fewer mornings without coffee, fewer disruptions to work and school. For Eskom, the meaning is something else: proof that its turnaround strategy – however long overdue – is producing real results.
“We know that trust must be earned,” Mokoena said. “We have broken trust many times before. This time, we are determined to keep it. Every day that the lights stay on, every week that diesel use stays low, we are rebuilding. It will take time. But we are getting there.”
As winter descends and temperatures drop, the true test will come. For now, Eskom’s diesel bill tells a story of progress. Whether that story has a happy ending – and whether the utility can maintain its trajectory – will be written not in a single financial update, but in the long, cold months ahead.
Eskom Diesel Expenditure – Comparative Snapshot
| Period | Diesel Spend | Average Daily Spend | Load-shedding Status |
|---|---|---|---|
| 1 Apr – 9 May 2025 | R2.53 billion | ~R65 million | Stage 2–4, frequent |
| 1 Apr – 9 May 2026 | R469.24 million | ~R12 million | None recorded |
| Improvement | -81% | -81% | Significant |
Source: Eskom media briefing, 9 May 2026
The next major update is expected in early June, when Eskom will release its full winter outlook and demand forecast. Until then, South Africans are advised to use electricity sparingly, install geyser timers, and – for the first time in years – feel a small measure of confidence that the lights might actually stay on.
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