Eskom takes action after breach of online vending system
Eskom says it has taken decisive action to strengthen its systems and restore public confidence following the disclosure in its full-year 2024 financial results, released in December 2024, of a forensic report detailing the breach of its Online Vending System (OVS).
The power utility said the system was exploited to generate and distribute fraudulent prepaid electricity tokens, revealing critical vulnerabilities in both the physical and cybersecurity components of its prepaid electricity infrastructure.
Forensic investigation
Eskom launched a forensic investigation in December last year into an electricity theft racket involving the use of illicit tokens for prepaid meters that may have cost the company billions of rand in lost revenue.
It also probed the security of its IT systems, including the involvement of some of its employees.
Eskom spokesperson Daphne Mokwena said in response, the utility undertook a comprehensive review and intervention strategy aimed at mitigating these vulnerabilities and restoring system integrity.
'Eskom uncovered weaknesses in physical and cybersecurity components on its OVS system.'
ALSO READ: Is Eskom winning the fight against corruption and theft?
Progress
Eskom's Group Chief Executive, Dan Marokane, said the utility has made significant progress in enhancing and protecting its infrastructure, ensuring greater resilience and reliability.
'We are fully aware of the challenges that have emerged within the OVS environment, and we have taken clear steps to address them. Our focus is on restoring trust, strengthening our systems, and ensuring that our customers can rely on a secure and efficient service.
'This is not just a technical fix, it is part of a broader commitment to transparency, operational excellence and accountability,' said Marokane.
Vigilance
Eskom stated that, while it continues its investigation in conjunction with law enforcement agencies, the findings will only be shared once the process is complete and the appropriate time for disclosure has been determined.
The utility said it continues to investigate and strengthen its systems and governance, calling on stakeholders and its customers to remain vigilant and report any suspicious activity related to prepaid electricity tokens
ALSO READ: Was Stage 6 load shedding revenge for tariff decision? Eskom CEO responds
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
4 hours ago
- IOL News
Electricity generation shows modest growth despite decline in consumption
Stats SA, in its release for electricity generated and available for distribution in May 2025, on Thursday indicated that electricity generation (production) increased by 2.3% year-on-year in May 2025. In a recent report released by Statistics South Africa (Stats SA), electricity generation in the country registered a year-on-year increase of 2.3% for May 2025. This modest rise in production stems from an essential shift in the energy landscape as South Africa grapples with increasing energy demands while managing various constraints within its traditional energy sources. According to Stats SA, seasonally adjusted electricity generation also experienced a positive trend, climbing 1.5% in May compared to April 2025. These figures follow month-on-month changes of 0.2% in April and 1.0% in March, indicating a more stable production environment. However, it is critical to note that over the last three months leading up to May 2025, there was a slight decline of 0.1% when compared to the previous quarter. Conversely, electricity distribution, which reflects consumption, revealed a decline of 0.4% year-on-year during the same month. In contrast, seasonally adjusted electricity distribution showed a month-on-month increase of 1.6% in May, supported by previous increases of 0.4% in April and 1.3% in March. Over the three months ending in May 2025, a marginal rise of 0.1% was observed compared to earlier periods. Energy expert Professor Wikus van Niekerk indicated that these consumption figures might not fully capture the reality, suggesting that the actual demand for electricity could have risen. 'However, because of the nearly 6.4 GW of additional electrical generation from solar PV systems, many 'behind the meter', this will not necessarily show up in the Eskom or Stats SA data as this electricity will be self-consumed by the prosumers that have installed these systems,' he said. Van Niekerk added that the Energy Transition is underway in SA and as Eskom and municipalities increase their prices while at the same time reducing their levels of service, this will continue and accelerate the demise of these structures. Craig Morkel, the chairperson of the Gas Economy Leadership Team of the South African Oil & Gas Alliance (SAOGA), echoed calls for greater transparency from Stats SA regarding the evolving landscape of electricity generation technologies. 'The technologies behind the meter may include solar PV plus battery storage and generators or gensets, typically at facilities that need power 24/7, such as data centers, essential services, including hospitals, clinics, police stations, schools, office buildings, hotels, and so forth,' Morkel said. 'The decrease on demand for electricity supply from Eskom and municipalities may be due tje increased uptake of self-generation at a small- to mid-scale and may be the reason why we have a decrease in consumption from Eskom and municipalities.' Morkel also pointed to signs of dwindling real GDP growth, hinting at reduced economic activity that may correlate with decreased electricity demand. He cautioned that the lingering effects of COVID-19 and regulatory uncertainties are undermining investment decisions in essential sectors. 'Without clear and certain policy, planning and procurement for the infrastructure that is required, our country cannot grow. Government needs to cut through the red tape in collaboration with industry,' he said. BUSINESS REPORT
Daily Maverick
15 hours ago
- Daily Maverick
Gridlock: The urgent imperative to increase SA's transmission capacity
South Africa is not short on ambition or potential when it comes to energy reform. The country's renewable energy market is maturing. Investment appetite is increasing and policy shifts, like the recent Electricity Regulation Act, indicate focused commitment to achieving a more competitive, sustainable and competitive energy market. However, one obstacle remains a hindrance to this momentum - transmission. Despite billions of rand committed to generation, over 20GW of renewable energy remains untapped due to a lack of grid capacity. As the country scrambles to meet rising energy demand and decarbonise its economy, transmission has emerged as the single most critical enabler of energy security and low-carbon growth. Importantly, the lack of transmission is not just a technical hurdle. It is the vital lever that is needed to unlock real energy transformation. With open access to the grid, more independent power producers (IPPs) will be able to participate and, more importantly, the increased capacity created by a robust transmission ecosystem will mean that South Africa (SA) can unleash the full potential of renewables – cutting emissions while improving reliability. The good news is that we appear to finally be on the path towards this enhanced transmission capacity. The establishment of the National Transmission Company of South Africa (NTCSA), to be spun off from Eskom, was a significant early milestone on this journey. This unbundling will enable open and transparent access to the grid for public and private generators. It will also pave the way for the trading of electricity through market platforms and wheeling arrangements, creating the foundation for a more dynamic and competitive power sector. The NTCSA coupled with the proposed Independent Transmission Projects (ITP) programme, creates a compelling case for private sector participation, not just in generation but also in grid infrastructure. However, there is still a long road ahead. The Transmission Development Plan (TDP) 2024 identifies the ambitious objective of integrating around 56GW of new generation and constructing over 14 000km of transmission lines by 2034. That is less than 10 years from now. The initial phase to 2029 targets a more realistic 5 043km of powerlines, but with only 286km expected to be completed in 2025, the gap between ambition and delivery remains immense. Also, with Eskom's financial constraints and national debt levels limiting national government's capacity to finance these builds, the success of the ITP programme will depend heavily on attracting private sector buy in, partnership and investment. Private investment in these ITP projects will require clear revenue models, predictable tariff structures and credible counterparties. The private sector needs certainty, not just around returns, but also when it comes to things like termination and non-payment recourse. South Africa could apply lessons from past public-private partnerships, like the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). A stable, predictable, and transparent regulatory environment, consistently applied, is key. Investors will need absolute certainty regarding tariff structures, off-take agreements with the NTCSA, and the long-term security of their substantial investments. The government's commitment to late-stage tendering – ensuring environmental approvals and servitudes are largely in place before bids – is a sensible move to de-risk projects. Standard Bank is actively engaged in this sector, working to structure bankable transmission models. There are multiple avenues to de-risk transmission investments, and we can leverage global lessons and precedents to achieve this. Countries like Brazil and Peru have successfully deployed BOOT (Build, Own, Operate, Transfer) models to deliver thousands of kilometres of grid infrastructure. We do not see any reason why South Africa cannot do the same. Transmission infrastructure does not have to be the bottleneck; it is an enabler of energy reform. But to do that, it needs to become a national investment priority. There are encouraging signs that this may be the case. The Request for Information (RFI) that took place between December 2024 and February 2025 gathered insights from market participants on how to accelerate the development of transmission infrastructure. Further milestones include the imminent release of the full Request for Proposal (RFP), which will signal a vital shift from talking and planning to execution, and allow government to shape the legal frameworks, procurement mechanisms and support instruments that will guide the first batch of independent transmission projects to market. This is the crucial next step in shifting SA's energy reality from crisis management to long-term and sustainable resilience. DM
IOL News
16 hours ago
- IOL News
Eskom announces stricter security measures following Online Vending System breach
Embattled power utility Eskom has announced new security and oversight measures for its prepaid electricity system Image: Supplied Embattled power utility Eskom has announced new security and oversight measures for its prepaid electricity system, aimed at strengthening its Online Vending System and improving control across its operations. The decision to implement the new measures comes after the release of a forensic report detailing a breach of the Online Vending System (OVS) in Eskom's full-year financial results for 2024, which were published in December 2024. According to the state-owned power utility, the system was exploited to create and distribute fraudulent prepaid electricity tokens. This incident highlighted significant vulnerabilities in both the physical and cybersecurity aspects of the utility's prepaid electricity infrastructure. In a statement issued to the media on Wednesday, Eskom said that it has undertaken a "comprehensive review and intervention strategy aimed at mitigating these vulnerabilities and restoring the integrity of the system." 'We uncovered weaknesses in physical and cybersecurity components on our OVS system,' Monde Bala, Eskom's Group Executive for Distribution, said. 'Earlier this year, Eskom successfully strengthened the protection of its current systems against potential threats. All system enhancements are managed through a robust Change Management process that spans all divisions, ensuring consistent oversight and control. Bala also stressed that the new measures are part of the utility's broader effort to safeguard operations and improve system integrity. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ "These measures are part of Eskom's ongoing commitment to safeguarding operations and addressing identified vulnerabilities,' said Eskom's Chief Technology and Information Officer, Len De Villiers. Eskom's Group Chief Executive, Dan Marokane, acknowledged the challenges facing the Online Vending System (OVS) and emphasised the utility's determined response. 'We are fully aware of the challenges that have emerged within the OVS environment and we have taken clear steps to address them. Our focus is on restoring trust, strengthening our systems, and ensuring that our customers can rely on a secure and efficient service. This is not just a technical fix, it is part of a broader commitment to transparency, operational excellence and accountability,' s Marokane said. Eskom added that it will continue to investigate and strengthen its systems and governance. "Eskom continues to investigate and strengthen its systems and governance, it calls on stakeholders and its customers to remain vigilant and report any suspicious activity related to prepaid electricity tokens". IOL Business Get your news on the go, click here to join the IOL News WhatsApp channel
