Chairman’s Foreword – 2022
Eskom faced significant challenges during the year, as limited and unreliable generation capacity continued to hinder South Africa’s post-COVID-19 economic recovery. Ageing coal plants, inadequate maintenance, and operational strain reduced plant availability, while new stations, Medupi and Kusile, underperformed due to design and planning flaws.
The 2019 Integrated Resource Plan underestimated the decline in plant reliability and delays in new capacity from independent power producers, widening the electricity supply gap. In July 2022, President Cyril Ramaphosa announced measures through the National Energy Crisis Committee, and Eskom made progress in implementing these, including easing regulatory barriers and procuring additional generation capacity.
Governance reform gained momentum. The Zondo Commission recognised Eskom’s actions to root out state capture, with over R2 billion recovered in partnership with the Special Investigating Unit. A dedicated task team was established to act on the Commission’s recommendations, ensuring accountability and strengthened governance. In October 2022, a new 15-member Board was appointed to restore stability and oversight, guided by Group Chief Executive André de Ruyter’s “Make Eskom Great Again” vision.
Operational and Financial Performance
Eskom’s financial performance improved notably despite the challenging environment. Revenue and profitability increased, and cash from operations strengthened, though it remained below debt repayment requirements. Continued government equity support and the Eskom Debt Relief Bill, announced in early 2023, provided crucial assistance toward restoring long-term financial sustainability.
Operationally, the generation fleet remained under pressure. Plant availability declined to 62%, and unplanned outages increased, leading to frequent load shedding. However, electricity sales grew by 3.4% as post-pandemic demand recovered, particularly in the industrial and mining sectors. Extensive maintenance projects, including Koeberg Unit 2’s 25th refuelling outage and the completion of Medupi Unit 1 and Kusile Unit 4, marked key milestones in strengthening future reliability.
Just Energy Transition and Strategic Projects
Eskom advanced its Just Energy Transition Strategy by repowering the decommissioned Komati Power Station with solar, wind, and battery storage. A partnership with SARETEC and the Global Energy Alliance led to the establishment of the Komati Training Facility, supporting worker reskilling and local economic development. The World Bank approved a R9 billion concessional loan to fund the project.
Further progress came through partnerships with the Kingdom of the Netherlands and the Mpumalanga Provincial Government, aligning economic recovery with Eskom’s transition plans. Eskom also launched its flagship Battery Energy Storage System (BESS) project, with construction starting in KwaZulu-Natal in December 2022 − the first phase of a 500 MW initiative to ease grid constraints and integrate renewables.
In October 2022, Eskom released its Transmission Development Plan, outlining the need for 53 GW of renewable capacity over the next decade, and signed land-lease agreements with independent power producers to develop new generation projects.
Governance, Legal and
Anti-Corruption efforts
Municipal debt remained a significant challenge, particularly in Gauteng, where arrears continued to rise. Eskom won a landmark Supreme Court of Appeal case confirming its right to collect payments from defaulting municipalities. The utility also strengthened anti-corruption measures, leading to arrests in major fraud and cable theft cases.
An internal task team was established to implement the Zondo Commission’s recommendations, focusing on consequence management, procurement reforms, and accountability.
Innovation, Stakeholder Engagement and community development
Eskom launched a crowdsourcing digital platform to attract skilled professionals to assist with technical and operational challenges. The utility also deepened engagement with business leaders and industry bodies to identify solutions to the electricity crisis.
In education and community development, Eskom continued to support young scientists and innovators through the Eskom Expo for Young Scientists and celebrated academic excellence at the NSTF South32 Awards, recognising contributions to science, engineering, and innovation.
Leadership transition
In December 2022, Group Chief Executive André de Ruyter announced his resignation but extended his tenure to ensure a smooth transition as Eskom began its search for a successor. His leadership period was marked by renewed focus on governance, operational recovery, and the early foundations of Eskom’s transition to a more sustainable future.