Eskom Unveils Plan to Eliminate Load Reduction by 2027 as Generation Improves

24 October 2025

Eskom Unveils Plan to Eliminate Load Reduction by 2027 as Generation Improves

Eskom has announced an ambitious strategy to completely eliminate load reduction practices by 2027, building on significant improvements in the national electricity system's performance. The plan, officially launched by Electricity and Energy Minister Dr. Kgosientsho Ramokgopa on September 25, comes as South Africa's power generation capacity shows sustained improvement.

While loadshedding remains suspended nationally, targeted load reduction—a localized form of power cuts affecting specific high-risk areas—continues to impact approximately 1.69 million customers, representing 20% of Eskom's customer base.

Generation Performance Reaches Key Milestone

Eskom reports that its Energy Availability Factor (EAF) has reached and exceeded 70% more than 22 times since August 2025. This marks a substantial improvement from the utility's performance in previous years, when EAF figures frequently dropped below 50%.

Despite these gains, Eskom maintains that approximately 529MW of load reduction during morning and evening peak periods remains necessary in certain areas, primarily to protect infrastructure from overloading caused by illegal connections and tampering.

Three-Pronged Approach to Ending Load Reduction

The utility has outlined three key strategies to eliminate load reduction over the next 12-18 months:

1. Expanding Free Basic Electricity (FBE) Access

Currently, only 485,000 out of 2.1 million eligible households in Eskom supply areas receive Free Basic Electricity (FBE). The utility plans to dramatically increase registration numbers, particularly as electricity costs continue to rise. This initiative requires collaboration between Eskom, municipalities, and various government departments.

2. Accelerated Smart Meter Rollout

Eskom has already installed 800,000 smart meters and plans to deploy 6.2 million more over the next three years. Of these, 577,000 will be installed by 2026 in areas currently affected by load reduction, with the remainder completed by 2027. These meters support Eskom's Demand Management Programme, enabling customers to better manage consumption during peak periods.

3. Deployment of Distributed Energy Resources

The utility plans to install 250 Distributed Energy Resources (DER) over the next five years to strengthen supply in remote and high-demand areas, creating more sustainable local energy ecosystems.

Investment and Implementation

Eskom has committed approximately R320 billion over the next five years to modernize and maintain electricity infrastructure, with 14% of this amount allocated specifically to distribution networks. Smart meters are being procured and delivered in phases to manage operational risks such as storage, theft, and damage.

"With stronger generation performance, teams on the ground, and the programme launched by Minister Ramokgopa, Eskom is driving the next phase of South Africa's energy recovery," said Acting Group Executive for Distribution, Agnes Mlambo. She emphasized the importance of community collaboration to ensure effective implementation.

Outlook: Challenges Remain Despite Progress

While the 70% EAF milestone represents significant progress for Eskom, the need for continued load reduction highlights persistent challenges in the distribution network. The success of Eskom's strategy will depend on several factors:

• Community cooperation in reducing electricity theft and illegal connections
• Successful coordination between various government entities for FBE registration
• Timely procurement and installation of smart meters
• Sustained generation performance to support distribution improvements

The focus on smart metering technology signals a shift from crisis management toward a more sustainable, modernized grid. However, the 2027 timeline indicates that many communities will continue experiencing load reduction for at least another year.

Key Terms Explained

Energy Availability Factor (EAF): The percentage of time Eskom's generation fleet is available to produce electricity at full capacity. A 70% EAF means that, on average, 70% of Eskom's total generation capacity is available to produce power.

Free Basic Electricity (FBE): A government program providing a minimum amount of electricity (typically 50-100kWh per month) at no cost to qualifying low-income households.

Demand Management Programme: Initiatives designed to influence when and how customers use electricity, particularly aimed at reducing consumption during peak periods (typically 6-9am and 5-8pm).

Distributed Energy Resources (DER): Smaller-scale power generation units located closer to where electricity is used, rather than at centralized power stations. These can include solar panels, small wind turbines, battery storage, and mini-grid systems that can operate independently or connect to the main grid.

Load Reduction: Unlike national loadshedding, load reduction targets specific areas where infrastructure is at risk due to overloading, often caused by illegal connections. It's implemented to prevent equipment damage and ensure safety.