Cape Town – Eskom had walked Public Enterprises Minister Lynne Brown “to the edge of the so-called coal cliff” and she was convinced that the experts had found ways to “mitigate and overcome this problem … assuming of course, that we stay on top of the mountain”.
Brown was speaking at the announcement of Eskom's interim results, which showed the power utility’s profit was down 24% from the previous year.
She said cabinet recently approved a package of support measures to set Eskom on the path to financial sustainability.
“It is multi-faceted and complex and we will have to climb and move mountains to make it work … but I believe it is the sea change that we have all been looking for,” she said.
Cabinet's plan to help Eskom
“Its scale and its breadth are a serious match for the challenges which it sets out to overcome. Some of our toughest critics in the ratings agencies are recognising that it has a chance.
“For the first time in a while, those with a nuanced understanding of the electricity supply industry are saying that we have a chance of turning this super-tanker around.”
Brown said a critical challenge was halting and reversing the decline in the country's generation capacity.
Eskom had presented its draft plan to halt and reverse the decline. “The expert on this matter says there is a reasonable chance of success,” she said, “assuming that we can climb mountains, of course.”
Magnificent spirit of Majuba
Brown praised the magnificent spirit of the staff of Majuba who she encountered when she visited the power station in the aftermath of the silo collapse early in November.
“I had planned to speak to as many staff as possible to keep up morale,” she said. “Instead, they lifted my morale through the reports on how everyone had performed above and beyond the call of duty to have workable solutions within days.”
“I left Majuba with pride and the knowledge that we have a dedicated workforce which is committed to go the extra mile in the interest of the country,” she said. “I believe that spirit can live in all those in Eskom and beyond who will be called upon to make this extraordinary effort we need over the next three to four years.”