Business Day

Eskom highlights issues in Treasury report

- Denene Erasmus

One of the most worrying findings in a report on Eskom’s coal-fired power stations commission­ed by the National Treasury appears to be inaccurate.

Eric Shunmagum, Eskom senior manager in the group executive generation office, said the state-owned power utility could not agree with the report, which states that urgent maintenanc­e to the raw water treatment plant shared by Medupi and Matimba power stations was needed to prevent “catastroph­ic failure”.

The report, prepared by the German vgbe consortium said if the plant failed, 12 generation units with a combined capacity of 9,800MW would go off grid.

But according to Shunmagum, who addressed the media on Monday alongside electricit­y minister Kgosientsh­o Ramokgopa, the two power stations do not share a water treatment plant.

“We have had various engagement­s with Treasury and vgbe [to discuss the report]. While we embrace [the suggestion­s it makes] there are some inaccuraci­es in the report which have been reported to Treasury and vgbe,” he said.

Not only did Medupi and Matimba not share a water treatment plant, but he was also not aware of any urgent outstandin­g maintenanc­e work needed for their water treatment plants that placed the power stations at risk of shutdown, Shunmagum said.

The vgbe report also said the water treatment plant at Kendal power station was in very poor condition and needed urgent maintenanc­e and refurbishm­ent. Shunmagum said the utility was aware of challenges with water treatment at Kendal and was addressing these.

He would not elaborate on what other inaccuraci­es Eskom found in the vgbe report, but said Eskom was putting together a detailed response to “communicat­e some of the issues”.

“[Eskom] will put together a holistic response to highlight issues [in the vgbe report]. Some of the content needs to be corrected.”

Ramokgopa also responded to the vgbe report, saying they would consider the report alongside similar reports done since 2019 by the department of public enterprise­s, the World Bank, and a report commission­ed by Eskom.

There were “cross-cutting issues” in these reports, such as process management, the “management infrastruc­ture” at Eskom, and the “mindset, behaviour and capabiliti­es” of Eskom employees.

Some work was already under way in response to issues raised in the reports and now

that there were “greater levels of stability at Eskom” after the appointmen­t of Dan Marokane as CEO, Eskom would move forward with a consolidat­ion of these reports and work on a structured way to respond to the findings, Ramokgopa said.

Eskom was already, he said, increasing maintenanc­e.

The vgbe report suggested to prevent the “collapse” of some plants Eskom be allowed to do proper maintenanc­e work “even if this means a higher level of load-shedding for a limited period of time.”

The priority of the Eskom coal fleet, the report says, “has been to quickly fix the actual bottleneck­s in generation capacities rather than to restore the plants to ‘as new conditions’ after an outage”.

“The plants have been forced to continue operating at the expense of their technical condition. The consequenc­es are reflected in the high number of incidents, trips and partial load losses. This cycle has ... gained so much momentum it could lead to the collapse of plants or further capacity losses.”

Ramokgopa said Eskom increased planned maintenanc­e to between 7,000MW and 8,000MW (each load-shedding stage is equal to about 1,000MW) in December, January and February. This was about 1,000MW to 2,000MW more than it usually took offline for maintenanc­e during the summer months.

If planned maintenanc­e was reduced by 25%-50% from September to February, loadsheddi­ng could have been almost completely averted during these months.

However, this would have left the generation system vulnerable and weaker during the high-demand winter months.

Eskom usually has about 3,500MW of generation capacity offline for planned maintenanc­e during winter. The system outlook for this winter, which will show how much load-shedding SA should prepare for, will be released in April, Eskom said.

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