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Eskom will not meet performance targets – Moody’s 

Moody’s, a rating agency, stated in a research note that Eskom, the South African utility company, is unlikely to meet its performance targets due to mismanagement, coal supply issues, skills shortages, sabotage, and theft.  

Eskom had set ambitious goals to improve its Energy Availability Factor (EAF) to 65% by March 2024 and 70% by March 2025, but currently, its fleet has an EAF of 57%. Moody’s emphasized that these targets are challenging given Eskom’s difficulties and track record.  

The agency warned that Eskom’s system would remain under pressure until there is a significant increase in new generation capacity, which will require substantial investment. Moody’s considers Eskom’s performance when making decisions about South Africa’s sovereign debt rating.  

In contrast, Electricity Minister Kgosientsho Ramokgopa expressed optimism about reducing load-shedding and improving the EAF, citing progress and private investment in increasing generation capacity.  

However, energy experts caution that Eskom still faces challenges, although the electricity supply during winter is higher and demand is lower for certain projects, potentially leading to a more reliable experience in the next three months compared to the previous period. 

Read the full article here.