Eskom

South Africa’s mining industry calls for action to end power crisis

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By Nqobile Dludla. Editing by Jane Merriman | Reuters

JOHANNESBURG (Reuters) – South Africa’s mining industry body on Monday urged the government to bring on stream new private sector power sources to ease the power crisis that has pushed the country to the brink of recession.

Struggling state-owned utility Eskom was forced to implement power cuts across the country last year and also last week even though many businesses and factories were closed for the holidays.

The power cuts have piled pressure on President Cyril Ramaphosa, who came to power with a pledge to revive investor confidence and boost economic growth.

The Minerals Council South Africa said the insecurity in power supplies plus rapidly increasing costs were at the forefront of the constraints on the economy and mining industry….Full Story

SA mines shut operations because of Eskom

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By Allan Seccombbe | Business Day

Eskom’s unprecedented cut of 6,000MW from the country’s power grid has forced companies to stop their mines on Monday nights.

SA’s mining companies shut their underground mining operations and processing plants on Monday night because of unprecedented power cuts by monopoly electricity supplier Eskom.

Eskom has moved to stage six load-shedding cutting 6,000MW  from its capacity as it grappled with a technical fault at its new Medupi power station, a plant that has run over costs and timelines. Wet coal and technical problems at other coal-burning plants have also contributed to the crisis.

It is the first time Eskom, the state-owed utility that has R450bn of debt, has removed so much power from the grid.

Impala Platinum, the world’s third-largest platinum miner, and Harmony Gold both said they had stopped their night shifts because of the power shortages.

“It’s very serious. We are not able to produce. What we lose today we can never catch up. If you lose a production shift it’s gone for good,” said Implats spokesperson Johan Theron…Full Story

6 reasons Eskom should cancel its MYPD 60% tariff increase application

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As Nersa prepares for public hearings on Eskom’s 45% Multi-Year tariff increase request (on top of an already approved 12% increase), Energy Expert Ted Blom has called on Eskom to scrap its application as the still captured and corrupt utility should not be granted any increases until a full forensic audit has been completed.

As we now enter 2019, Eskom is rudderless,” says Blom. “The Eskom board has proved to be dysfunctional and required Ministerial intervention on several occasions. Although appointed 12 months ago, they have been unable to carve out a credible turnaround plan, despite the use of expensive outside consultants.” Blom further pointed out the skills shortage which has lead to the President intervening by appointing “8 wise men” to steer the Board in the right direction by a deadline set for 31 January 2019.

“The many futile interventions point to an unsalvageable and bankrupt Eskom,” says Blom, “In fact, the pillaging is still continuing, this time by another ‘third force’ which has replaced the Zupta gang.”

The extent of the pillaging has already been confirmed by the Public Protector, the Parliamentary Investigation report, the Dentons report, and in Eskom’s annual report where it references corruption over 30 times. Questions remain as to why no-one has been prosecuted and no monetary recovery has occurred.

Throwing coal on the fire is an acknowledgement of serious design flaws at Medupi and Kusile, resulting in an estimated 10% or more performance incapacity – according to Minister Gordhan’s latest revelations. Yet Eskom kept this quiet since the first commission began in 2012.


Where are the auditors and Eskom Governance structures in all this mess?

In addition, Eskom has also acknowledged coal procurements lapses of late. According to Blom, rampant coal procurement fraud has been ongoing since 2006, and Eskom has ignored or blessed this ongoing fraud annually.

Although Eskom has acknowledged a bloated headcount (estimates are by 35 000 including ghost workers), Nersa continues to ignore the gross inefficiencies and has, since 2008, granted tariff increases of some 500% above the corresponding inflation rate. “This has just fueled and financed the rampant corruption,” claims Blom.

Still to be uncovered is the actual loss been forced onto Eskom as a result of Government’s corrupt renewable schemes. “Last year, it sucked around R34bn from Eskom revenue and is destined to increase to R50bn for this year “ states Blom. Another 14 GW of REIPP is in the pipeline on top of the currently approved 6GW – Blom suggests this will “kill off” Eskom within months as lenders can see the writing on the wall.

Blom intends representing electricity users at each of the 10 provincial public hearing venues from 14 January to 4 February 2019. “Against these dire circumstances, it is NOT appropriate for Eskom to proceed with their ‘business as usual’ tariff increase applications,” Blom stated…Read More