Eskom averts load shedding

DIRE STRAITS: GENERATION FLEET OPERATING AT 72.8%

Eskom on Monday narrowly averted load shedding despite a decline in peak energy demand.

In the private sector, power utility would have had to decrease staff or close its doors – COO.

Eskom on Monday night narrowly averted load shedding despite a decline in peak energy demand compared to 2007 and the addition of over 7 500MW of Eskom-installed generation capacity over the last decade.

These numbers are contained in energy regulator Nersa’s System Adequacy Report, published in August.

According to the report, Eskom should have a reserve margin of 23.1% if energy imports, renewable energy and other power purchases are excluded.

When these are taken into account, the margin should be 37.53%, according to Nersa.

The regulator also indicated that the availability factor of Eskom’s generation fleet has deteriorated to an average of 72.8% for the first eight months of the year, the lowest since 2015.

This comes after one worker died and another was seriously injured in an explosion at Eskom’s Lethabo power station last week. The utility said the relevant unit would be out of service for at least three months.

Eskom also earlier admitted that several of its power stations were suffering coal shortages.

And Eskom spokesperson Khulu Phasiwe announced on Twitter on Monday that one of the utility’s most experienced executives – group executive of generation Thava Govender – has resigned and will leave Eskom at the end of the month.

Govender, who has also acting group executive of risk and sustainability, has worked for Eskom for 27 years.

Govender’s resignation follows that of Eskom Rotek Industries chief executive Johnny Dladla last week. Dladla has been with Eskom for 23 years.

Eskom sources say the pressure on management to turn around the ailing utility is huge.

In another development, energy expert Professor Anton Eberhardt on Monday night tweeted an extract from a message sent to Eskom staff by chief operating officer Jan Oberholzer.

Oberholzer says Eskom’s interest bill alone amounts to R45 billion per annum. In 2017-18, it was R25 billion at group level.

Eberhardt commented: “Already that’s higher than the sums foreseen in their tariff application to the electricity regulator ...”

Oberholzer further tells Eskom staff that the R2.3 billion loss in 2017-18 is expected to be “much bigger” in the current financial year.

He says the bargaining unit wage increases and bonuses will cost Eskom “a few billion in the next three years.” He adds that there has been “severe overspending” on overtime since April.

Oberholzer then challenges Eskom staff to ask themselves three questions around October 26. “Does Eskom have the money to pay me on the 26th? Have I earned my salary on the 26th? And, am I taking the 26th for granted?”

Oberholzer has observed that Eskom staff don’t appreciate the financial crisis it’s in and seem to feel entitled to their salaries and bonuses whether they do what’s expected of them or not.

“Dear colleagues, the reality is that if Eskom had been in the private sector, we would probably have had to either decrease our staff or close our doors permanently if we look at the state of our finances,” he said.

Power station out of service after deadly explosion.