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Eskom's acting CEO Brian Molefe.
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11 Aug 2015
Molefe's report: Residential debt, particularly Soweto, continues to
escalate. Soweto payments received during the year
amounted to R119 million, compared to billing for
the same period of R730 million, creating a shortfall
of R611 million, reflecting an average payment level
of 16%.
11 Aug 2015
Molefe's report: Municipal arrear debt increased from R2.6 billion at
31 March 2014 to R5 billion at 31 March 2015. We
had numerous meetings with National and Provincial
Treasury and the Department of Cooperative
Governance and Traditional Affairs (CoGTA) on the
increasing municipal debt.
11 Aug 2015
Molefe: We have indicated to all of our coal suppliers that we are interested in a tender for coal of a certain quality.
11 Aug 2015
Molefe: Our operations are not fundamentally flawed - it is the funding for capital expenditure etc that push us into a negative position. We do not think Eskom is insolvent.
11 Aug 2015
Molefe: We were cash positive, but due to capital expenditure we had to borrow. So yes, we have a cash flow gap, primarily because we have capital expenditure.
11 Aug 2015
Molefe's report: IPPs play an important role in ensuring security of
supply at a time when our generating capacity is
closely matched or exceeded by electricity demand,
by providing space for maintenance and reducing
the need for load shedding. IPPs also provide much
needed renewable energy to our energy mix.
11 Aug 2015
Molefe's report: We purchased 6 022GWh from IPPs at a cost of
R9.5 billion during the year. Capacity of 5 701MW has
been contracted with IPPs as at 31 March 2015. Of this,
3 887MW relates to contracts under the Department
of Energy’s renewable energy programme. To date, a
total of 1 795MW of renewable energy capacity has
been connected and is providing power to the grid,
with an average load factor of 30.85% for the year.
11 Aug 2015
Molefe's report: Overall coal stock stood at 51 days as at
31 March 2015, against a target of 42 days. The coal
rail performance achieved 12.59Mt against a target
of 11.5Mt. Particulate emissions performance for the
year was 0.37kg/MWhSO, worse than the target of
0.35kg/MWhSO, reflecting the impact of running the
plant at unsustainable levels, while water performance
of 1.38
?/kWhSO for the year was better than the
target of 1.39
?/kWhSO, although it deteriorated
compared to the prior year.
11 Aug 2015
Molefe: Our cash reserves declined due to large
amounts spent on diesel for the OCGTs as well as a
significant increase in arrears municipal and residential
customer debt, particularly Soweto.
11 Aug 2015
Molefe: Currently just finalisation of illegal strikers's disciplinary hearings. Those workers were not Eskom employees, they work for contractors.
11 Aug 2015
Exco member: In the new business the majority of workers are employed by contractors and we are holding them responsible to manage their workers within law.
11 Aug 2015
Molefe: Eskom exco felt unfair if we did not take into consideration that R9bn savings and not R9.6bn were achieved. So we made it an ex gratia payment for the effort that had been made by ordinary workers to whom the bonus makes a significant difference.
11 Aug 2015
Molefe: The current briefing is handled by the exco and not the board so that technical questions can be answered.
11 Aug 2015
Load factor for renewables are driven by availability - when there is now wind your generation goes down as no input.
11 Aug 2015
Molefe: We will continue to catch up on maintenance and to reduce the average age of our fleet.
11 Aug 2015
Molefe: Our request of the money for diesel up front has been refused, but the money itself has been agreed. So merely the timing was in dispute.
11 Aug 2015
Molefe: We are spending money on diesel at the moment - we want to start asking for some of the monies for diesel up front.
11 Aug 2015
Molefe: How do we say to Soweto residents they must pay their debt to us and we allow a company owing us money not to pay?
11 Aug 2015
Molefe: Eskom's financial position does not allow us to renegotiate any contracts simply to rescue a mine - we are not in the business of rescuing mines. We will just pursue our obligations we have in terms of law - including all the debt owed to us.
11 Aug 2015
Molefe: The tariffs we are getting from Nersa is not cost effective. So how do we address ourselves in rescuing mines!
11 Aug 2015
Molefe: Our current coal contract has 2 years to go - until 2018 - at a particular price and they are asking to be released from their obligation.
11 Aug 2015
Molefe: So we want the flexibility to move to where we can buy the best quality of coal.
11 Aug 2015
Molefe: I do not see the coal industry objecting to us getting the right quality of coal.
11 Aug 2015
Molefe: Because we are tied to a coal agreement, we cannot shift if the coal deteriorates in quality. Which has been happening now - it has in fact been damaging our equipment.
11 Aug 2015
Molefe: We said to coal industry that going forward we want to get out of arrangement where we link capital to certain mines.
