Weather and winter tariff on large users helping to moderate electricity demand

Eskom is expecting demand for the rest of South Africa’s winter months to remain below levels initially assumed when the utility finalised its base case for the high-demand season (see graphic above), while it is also beginning to report improved generation performance at some of its coal stations. When Eskom unveiled its winter outlook on May 18, it warned that it might be forced to resort to Stage 8 loadshedding (representing 16 hours of cuts in a 32-hour cycle) should it fail to cap coal plant breakdowns to below 15 000 MW and should demand spike on the back of colder temperatures, particularly in Gauteng.