Posts tagged with 'power utility'

 

Cash strapped Eskom wants another R27bn from consumers – Could this be the reason why SA is experiencing #Rollingblackouts? To manipulate us into giving them what they want?

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In its latest application to the energy regulator, the power utility is claiming this as an underrecovery for 2018/19, meaning tariffs may rise by 16.6% next year

Eskom, which last week again saw a collapse of its power network that led to nationwide load shedding, wants consumers to cough up a further R27 billion for electricity.

The national energy regulator Nersa has published Eskom’s latest application for public comment.

In it, the power utility said this was the amount that it underrecovered in 2018/19, and that it therefore wanted R27 billion more through power tariffs.

Although Eskom suggested that whatever Nersa granted should be added to electricity tariffs next year and the year thereafter, Nersa’s decision will likely be too late to influence 2020 tariff increases.

However, if Eskom receives the full R27.2 billion that it wants, and it is implemented over two years, this could see electricity tariffs in 2021 increase by 11.38% instead of
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Eskom warns – Be prepared for ‘load shedding at short notice’

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The struggling utility has been forced to go the expensive route of using water and diesel due to the breakdown of some units.

The “unexpected loss” of some of Eskom’s generation units over the weekend has left the electricity system “severely constrained”, the struggling energy utility said in a statement.

While the statement said load shedding was “not expected”, it also said the “unexpected loss of additional units may result in load shedding at short notice”.

“The system remains vulnerable to a number of variables due to historic factors such as inadequate maintenance as well as ageing of plants.”

The utility said 9,500MW of power was taken out of the grid due to the breakdowns, forcing it to use “emergency resources” – water and diesel – to meet demand.

This follows five days of load shedding in October due to outages at five power generating units.

At a media briefing last week, Minister of Public Enterprises Pravin
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Eskom – in return for R59bn bailout from National Treasury, Eskom must recover Soweto, municipal debt

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National Treasury is set to impose 28 conditions on Eskom in return for a R59bn lifeline to keep the cash-strapped power utility afloat and enable it to pay interest on its mounting debt burden.

Treasury updated Parliament’s appropriations oversight committee on the conditions attached to an appropriations bill on Wednesday. The bill, which has not yet been passed by Parliament, grants R59bn to Eskom over two years. This is in addition to R69bn over three years announced by Finance Minister Tito Mboweni in his maiden February budget.

In addition to regular and detailed reports of all its finances, Treasury has stipulated the utility needs to recover all debt owed to it by errant municipalities, national department and corporations, including Soweto.

“Eskom cannot provide electricity and not collect debt,” Treasury’s acting director-general of the assets and Liabilities Tshepiso Moahloli told MPs. “Members, we know that between Soweto and municipalities –
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Eskom drowning in debt, will need R69 billion to service its overflowing liabilities

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Eskom chairman Jabu Mabuza during the power utility’s annual financial results presentation on November 28, 2018 in Johannesburg, South Africa. During the presentation, it was revealed that Eskom’s debt service costs have doubled in a one year to R45bn.

Jabu Mabuza addressed the Portfolio Committee on Public Enterprises on Wednesday and announced Eskom is owed R20 billion by municipalities.

The chief executive officer announced that the power utility is in a critical condition as government’s financial support only addresses short-term liquidity, and Mabuza revealed that these issues will be detailed in the progress report, National Treasury and the Minister of Finance are currently working on.

Mabuza noted that there is a need in establishing an energy plan for the power utility, as the country’s condition is critical in an ever-changing energy landscape; he stated that the annual report will be made public and it will prove Eskom’s financial perfo
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Bankrupt Eskom pleads for another government bailout as debt climbs beyond R450bn

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The power utility’s debt is reaching levels beyond R450 billion and Mabuza was in Parliament on Tuesday asking government for more money.

Eskom CEO and board chairperson Jabu Mabuza said the power utility’s debt levels have reached the ceiling.

Eskom’s debt is reaching levels beyond R450 billion and Mabuza was in Parliament on Tuesday asking government for more money.

He said the power utility has not done enough to generate more revenue.

The acting CEO also admitted that Eskom was borrowing money to pay off its debt.

“Our revenue over the past 10 years, increasingly so over the last five years, has actually been flat to about 1% per year. On the other side, we’ve had a ballooning debt that we have not been able to collect which has totalled to R38 billion.”

Mabuza said the only function Eskom could control was its own expenses.

Finance Minister Tito Mboweni tabled a bill before the National Assembly in July to allocate R59 billion to Esk
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During the ANC regime, roughly R500 billion has been looted by Eskom contractors, which partly explains why South Africa is in such a big financial mess – it is unsure if the culprits will be brought to justice

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A Special Investigation Unit is currently investigation more than eleven contractors whom are suspected of robbing the power utility of billions of rand.

The contractors looted R130 billion from Eskom during the construction of the two new power stations, Medupi and Kusile as well as the Ingula power station.

From the so-called “inner circles” it is claimed that plundering at Eskom has been taken place since 2005, which partly explains why South Africa has ended up in a financial mess.

A spokesman said Eskom had been robbed of R170bn, of which R130bn was directly related to so-called contractors working at the different power plants.

Investigation is now being done to determine who has committed theft, and who worked within Eskom to benefit the thieves.

Read the original article in Afrikaans on Die Vryburger
This report does not necessarily reflects the opinion of SA-news.

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Rolling Blackouts on the cards as AMCU threaten secondary strike , AMCU represents about half of coal mine workers in SA

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The tussle between Sibanye-Stillwater and the Association of Mineworkers and Construction Union (AMCU) has reached new heights.

The trade union, whose membership also includes coal mine workers, has teased a secondary strike and this could affect load shedding too.

Why is AMCU set to embark on a secondary strike?
AMCU president, Joseph Mathunjwa, made it abundantly clear that the upcoming strike has to be felt on a national scale. The plan is to render the entire country to a complete standstill.

This, according to Mathunjwa, is the only way to make the government — particularly the Minister of Mineral Resources, Gwede Mantashe — heed their calls for a moratorium at Sibanye-Stillwater.

Mantashe, on Thursday, revealed that his department would be engaging with the gold producer after it revealed its intentions to retrench more than 6 000 workers.

Mathunjwa expressed his disgust with this, criticising Mantashe of catering
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South Africans should brace for more rolling blackouts as the power grid is unstable and cannot produce enough power to sustain the country

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Eskom warned of wider controlled power cuts on Monday after six additional generating units unexpectedly went offline. The power utility launched stage 4 load shedding, which requires the shedding of 4 000 megawatts from the grid.

The Cape Chamber of Commerce and Industry is shocked by the sudden dramatic increase in load shedding.

“How is it possible for six units to go down at the same time?” asked Ms Janine Myburgh, President of the Chamber. “It is just too much of a co-incidence and we must ask if this is not another case of sabotage?”

Sabotage was blamed for a previous bout of load shedding, but the form it took was never explained to the public, except for workers who prevented coal deliveries from taking place.

“Stage Four load shedding is very serious indeed and it will affect commerce and industry. This will also affect the jobs of other workers, especially in heavy industry and it is time that workers whose jobs are at
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