More grappling with endless woes of Eskom

ESKOM’S woes could be laid bare this week when members of the portfolio committee on energy meet with its senior managers and board members.

The committee, chaired by ex-unionist Fikile Majola, would also visit two energy agencies.

The power utility has been on record for its requiring R250 billion to plug the funding gap, and also R15 billion from proposed tariff hikes.

Energy regulator Nersa last month sent Eskom back to the drawing board over its request for a tariff hike of 25.3 percent to boost its low coffers.

But Nersa said there was no basis the hikes Eskom want would change anything regarding load shedding. The power utility has admitted that load shedding is likely for the next two to three years because maintenance on most power stations over many years had been inadequate.

The visit by the portfolio committee to Megawatt Park could signal whether MPs would support another bid by Eskom for a tariff hike.

The power utility recently received a cash injection after Parliament approved two laws giving it R23 billion and R60 billion.

The former was the money Finance Minister Nhlanhla Nene had promised during his budget speech in February.

Its intention is to improve the financial situation of Eskom.

The R60bn was the conversion of a loan, that government gave to Eskom back in 2008, into equity.

But despite the cash injection Eskom still needs to remain stable, and also get the tariff hikes.

The power utility is also battling the completion of new stations.

Medupi in particular is running behind schedule because of strikes and other delays.

It also appears to have passed the stage of internal fracas after four executives who were suspended were cleared of wrongdoing last week.

Three of the four executives have since parted ways with Eskom, while the fourth has returned to work.

The portfolio committee will have a first-hand account of the events surrounding Eskom and how things could be turned around.

The committee has met with Eskom in Parliament this year, but the oversight visit would provide members the opportunity of having a closer look at work done on the ground.

MPs would also interact with board members as well as senior managers.

A few months ago, Eskom took a decision to send its senior managers to power stations every Friday to monitor developments.

The idea was commended by MPs when acting chief executive Brian Molefe announced it in Parliament a few months ago.