Eskom surge in diesel costs

JOHANNESBURG — Eskom expects running costs for its diesel-fed turbines, which are used to keep the lights on when coal-powered plants break down, to surge as it struggles to keep up with maintenance.

Eskom sees about a third of its coal-fired capacity being unavailable at any one time under a most likely scenario, it said last week in a presentation to the National Economic Development and Labour Council (Nedlac), which groups business, government and labor union representatives.

That would require it to spend R20.9 billion on fueling its open-cycle gas turbines in the 13 months through April next year, or almost three times what it spent in the financial year ended March last year.

Eskom has forecast that its debt will rise to R416 billion by the end of this month, and the unplanned expenditure will add to its financial woes. —