Eskom will cut 2GW of supply from the national grid because it lost additional generating units overnight.
Eskom is locked into a permanent loss situation and revenue is structurally limited. Expenses have ballooned due to inefficiencies, and electricity tariffs are not cost-reflective.
Eskom on Thursday introduced stage-one rotational load shedding, saying it would be in effect from midday to 10pm.
Eskom’s first-half profit plunged 89% and the situation at the South African state-owned power utility is likely to worsen in the next six months, chairman Jabu Mabuza said on Wednesday.
The finances of Eskom, Transnet and other companies owned by South Africa’s government have deteriorated to such an extent that they now pose a significant risk to the nation’s finances, the auditor-general said.
Struggling power utility Eskom has extended its load shedding regime from four stages that allow up to 4GW of demand to be shed, or cut, to eight stages providing for up to 8GW to be shed.
Eskom is proposing executive job cuts and a reorganisation of management units in an effort to improve the utility’s financial position.
Eskom has shut down 11 power station units due for major maintenance because it lacks the funds to fix them.
A forensic report into Eskom and Transnet found some executives and board members failed to act in the companies’ best interests and recommended criminal investigations against them.
State-owned power utility Eskom may be forced to implement controlled blackouts before the end of the year because of pressure on the national system, CEO Phakamani Hadebe said on Friday.