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Johannesburg - Friday's protest action by small freight-transport businesses carrying coal to Eskom's power stations was merely the next step in a dispute that has been brewing for some time.
Thirty-odd of these contractors, who have contracts with the power utility to transport coal, gathered in front of Eskom's head office at five o'clock on Friday morning, blocking the entrance with their trucks.
The owners say that Eskom is cutting down use of their services, preferring to use larger freight-transporting companies. This despite the smaller companies having Eskom contracts. A representative of the smaller contractors says they can no longer keep their heads above water.
A memorandum of the transport contractors' demands handed to Eskom on Friday was discussed by the parties on Saturday.
Eskom spokesperson Fani Zulu says the two groups have for some time been in discussion to resolve the dispute.
"There are, however, two large issues that are different this year from a year ago. The primary one is that demand for coal has declined this year, for which there are various reasons. Firstly, last year's coal supply was very low and it had to be urgently restored. Secondly, this year has seen a significant decline in the demand for power because of the economic downturn."
According to Zulu, the contracts that the transport contractors have with Eskom refer to short-term coal supplies. This is coal that Eskom buys on the open market, which is extremely expensive. It is bought only in extreme circumstances.
Last year, says Zulu, such extreme conditions existed when coal supplies were very low and the company needed to obtain coal very urgently.
"But this is not so today, and the contractors can therefore not expect the same volumes as a year ago."
Eskom chief executive Jacob Maroga confirmed receiving the memorandum and said the contractors' concerns would receive attention.
"The transporting of coal is very important to Eskom. It is therefore in the best interests of all parties to resolve the grievances as soon as possible."
The contractors' actions had had no impact on Eskom's electricity provision.
- Sake24.com
For more business news in Afrikaans, go to Sake24.com.