Government has transferred R140bn to Eskom since 2023 as part of a broader debt relief programme
Image: FILE
Eskom has received R140bn from government over the past two years to help pay off some of its debt, with another R80bn coming this year.
A presentation to the National Assembly’s electricity and energy portfolio committee laid bare its performance during a briefing on the third-quarter results of the department and the six entities it oversees.
The presentation showed that during this period, Eskom achieved 22 of its 35 performance targets, or about 63%.
It also said Eskom has been operating with a vacancy rate of about 10.6%.
But despite this, it reported revenue of about R273.7bn and a year-to-date net profit of roughly R27.6bn for the period ending December 31.
Slides presented to MPs also outlined the scale of government support to the power utility.
Through the Eskom debt relief programme announced in the 2023 budget, government had transferred R140bn to Eskom so far — including R76bn in the 2023/24 financial year and R64bn in 2024/25.
A further R80bn allocation for the 2025/26 financial year is expected to be transferred in the fourth quarter.
Eskom’s financial position was described in the presentation as solvent, with cash and cash equivalents of about R66.6bn.
The department oversees six electricity-related entities.
These include Eskom, the National Energy Regulator of SA (Nersa) and the National Nuclear Regulator (NNR).
The Nuclear Energy Corporation of SA (Necsa), the National Radioactive Waste Disposal Institute (NRWDI) and the SA National Energy Development Institute (Sanedi) also fall under the department.
The presentation showed mixed results among the remaining entities.
Necsa achieved 11 of its 15 targets, or 73%, but reported a loss of about R19m, while Nersa achieved 29 of its 30 targets, or 97%, but still recorded a deficit of about R43.6m.
NNR achieved all of its targets and reported a surplus of about R117m, while NRWDI also achieved all of its targets and recorded a surplus of about R535,000.
Sanedi achieved 20 of its 21 targets, or 95%, but reported a deficit of about R7.7m.
The presentation also highlighted financial pressure across several of the entities due to reduced allocations in the medium-term expenditure framework.
During the meeting, MPs raised concerns about slow spending in parts of the department and delays in filling vacant posts.
MP Nazier Paulsen said the department itself had attributed the slow spending to delays in filling vacant positions and delays in appointing service providers for major projects.
He questioned what specific bottlenecks were preventing the department from filling the posts.
“There are 74 vacant posts, 349 employees against a head count of 423,” Paulsen said.
“So given that slow spending on compensation for employees is a recurring theme across all five programmes, what specific bottlenecks are preventing the filling of these roles?”
Paulsen also asked how the department expected to reach its full staffing complement by the 2026/27 financial year if it was struggling to fill current vacancies.
He further raised concerns about delays in electrification projects.
“The department admits that the budget for non-grid electrification may not be fully spent and targets are being missed,” he said.
“So what specific procurement or technical obstacles are stalling these projects? And what corrective measures are being planned to ensure that the 9,000 household deficit is closed in the next cycle?”
Paulsen also questioned delays in key planning projects such as the gas master plan and the Grand Inga project.
“So how will these delays impact South Africa’s long-term energy security and the just energy transition?” he asked.
Responding to the questions, department official Subesh Pillay said some post-filling delays had been linked to organisational restructuring and a new job evaluation system introduced by the public service and administration department.
“On the filling of posts, I think we accept that we had stalled,” Pillay said.
“We have a total head count of 381, against which 351 or 350 posts are filled, so the vacancy rate is not as high as the 78 number.”
He said some of the remaining posts had been funded through the new department following the restructuring of the former mineral resources and energy department.
Pillay said the department initially held back on filling the posts because the DPSA introduced a new work grading and job evaluation system.
“For all new positions we had to re-evaluate those jobs based on the current formulation of the job evaluation system that the DPSA had put in place,” he said.
“That process has continued and EXCO has now agreed that we must proceed to fill those positions.”
He said the human resources team was now proceeding with advertising the posts.
During the same sitting, MP Kevin Mileham also criticised the department for still operating through the website of the former mineral resources and energy department following the restructuring that created the new electricity department.
“I’d like to know when you’re going to move off the DMRE website,” Mileham said.
“Frankly it’s unprofessional for you to still be posted on their website.
"When are you going to get your own?”
Mileham also raised concerns about Eskom’s operational performance, pointing to figures in the presentation that showed the power utility was behind its own recovery targets.
He said Eskom recovered 1,383 megawatts of capacity against a target of 1,980 megawatts.
“They are 30% behind their own recovery schedules, and yet your tone remains very congratulatory,” he said.
Mileham said the department should be clearer when targets were missed.
“If we’re not achieving the target, we’re not achieving the target,” he said.
He also raised concerns about delays in the Integrated Energy Plan, which is required under the National Energy Act.
“Section six of the National Energy Act has been law since April 1 2024, and you confirm that the IEP targets have not been achieved,” Mileham said.
“On what legal authority are you making multimillion-rand procurement decisions like gas and nuclear when you don’t have this mandated statutory blueprint?”
Mileham also questioned why the finalisation of the Integrated Energy Plan was dependent on a non-refundable financing agreement from the Spanish government.
“Does the department lack the basic technical competence to plan SA’s energy future without relying on foreign charity?” he asked.
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