While no load shedding is anticipated this summer, Eskom will continue to carry out maintenance at its plants, Group Chief Executive Brian Molefe said on Monday.
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Public Enterprises Minister Lynne Brown conceded in March that load shedding was costing the economy R20bn-R30bn a month. A compounding problem arises from the elasticity of electricity demand in the face of steeply rising electricity prices significantly above the inflation rate, which further reduces electricity sales volumes and increases claw-back claims, in a vicious circle.
“The recent stable supply of electricity for 99 days has resulted in an increase in manufacturing output, which rolls 0.9% year and year”. This comprised of renewable energy (which contributed up to 1 300MW during the day) Open Cycle Gas Turbines (which have seen Eskom tackling a mounting diesel bill) and demand market participation.
There would also be a shift from the incessant marketing by Eskom for consumers to use less of its product, to switching to alternative domestic energy sources such as solar water heating, solar PV and cooking with gas.
There is, however, concerns that load-shedding has been averted at the expense of adequate maintenance.
“While the system remains tight, we will continue with maintenance with no or limited load shedding”, said Molefe at a briefing on the current state of the power system.
“There is a line between not doing maintenance at all, and doing maintenance at all costs. We are looking for the line to do sufficient maintenance without load-shedding”, said Molefe.
Designs for the permanent solution have been completed, which includes the re-instatement of the damaged silo and its coal conveyor system, as well as the reinforcement of the two other coal silos.
As far as the broken boiler at Duvha is concerned, Molefe said talks between Eskom and its insurer were coming to a close with agreement over the solution.
Chief financial officer Anoj Singh said Eskom’s funding gap had reduced and if it received the promised equity injection from the government this year it would end the financial year with R10bn-R15bn in cash which would help it to meet a repayment of R47bn due next year.
The cash injection plus a R60-billion loan writedown were announced in February by treasury as part of a rescue package for the utility.
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The regulator said it was assessing Eskom’s request and did not say when it would publish its outcome. “No bonuses have been paid to the executives in the last two years”, says Molefe.
