Cape Town – Eskom CEO Tshediso Matona gave an impassioned explanation about the challenges facing the embattled energy supplier.
Read: As it happened
The key points include:
1. Maintenance
Matona used the metaphor of Eskom as a car that has not been maintained. He told a press briefing at the Eskom Megawatt Park: “Eskom is like a car that has not been maintained. Eskom has not stayed faithful to that maintenance religion for a very, long time. The reliability of our equipment is the price we are paying."
Matona has admitted that Eskom’s equipment has become so unreliable, that the risk of a breakdown is an ever present reality that is creating havoc.
2. Tariffs
Matona has suggested a revision of tariffs. Eskom is set to engage with Nersa for tariff increases. “Government co-owns the problem - we don't name our price - the regulator sets our price.” According to Matona the current tariff is not cost effective.
3. Diesel usage unsustainable
Diesel is supposed to be used for a very limited period due to its huge financial cost. Eskom has been forced to use excessive amounts of diesel to keep the lights on. This has put the company’s financial health under pressure.
4. Koeberg needs maintenance
One unit at the Koeberg plant will be down for maintenance in February. This will take 900MW out of the electricity grid and will put more pressure on an already strained system. Yet, Matona has praised Koeberg as the pinnacle plant in SA when it comes to maintenance. “Koeberg runs consistently without problems." He said that up to 400 days can pass by without it needing maintenance.
5. Load-shedding
“There is definitely going to be load shedding,” Matona said. “That is the message we are sending." The country should be prepared for blackouts during the maintenance period.
6. Medupi
Matona has assured the country that the Medupi power station’s synchronisation (when you start making electricity from a unit for the first time) process is week's away. However, it will have to go through many tests before it is fully integrated.
What Fin24 tech editor Gareth van Zyl took out of the briefing:
The full presentation:
Read: As it happened
The key points include:
1. Maintenance
Matona used the metaphor of Eskom as a car that has not been maintained. He told a press briefing at the Eskom Megawatt Park: “Eskom is like a car that has not been maintained. Eskom has not stayed faithful to that maintenance religion for a very, long time. The reliability of our equipment is the price we are paying."
Matona has admitted that Eskom’s equipment has become so unreliable, that the risk of a breakdown is an ever present reality that is creating havoc.
2. Tariffs
Matona has suggested a revision of tariffs. Eskom is set to engage with Nersa for tariff increases. “Government co-owns the problem - we don't name our price - the regulator sets our price.” According to Matona the current tariff is not cost effective.
3. Diesel usage unsustainable
Diesel is supposed to be used for a very limited period due to its huge financial cost. Eskom has been forced to use excessive amounts of diesel to keep the lights on. This has put the company’s financial health under pressure.
4. Koeberg needs maintenance
One unit at the Koeberg plant will be down for maintenance in February. This will take 900MW out of the electricity grid and will put more pressure on an already strained system. Yet, Matona has praised Koeberg as the pinnacle plant in SA when it comes to maintenance. “Koeberg runs consistently without problems." He said that up to 400 days can pass by without it needing maintenance.
5. Load-shedding
“There is definitely going to be load shedding,” Matona said. “That is the message we are sending." The country should be prepared for blackouts during the maintenance period.
6. Medupi
Matona has assured the country that the Medupi power station’s synchronisation (when you start making electricity from a unit for the first time) process is week's away. However, it will have to go through many tests before it is fully integrated.
What Fin24 tech editor Gareth van Zyl took out of the briefing:
The full presentation: