Eskom’s massive diesel conundrum

[BusinessTech]

Eskom’s massive diesel conundrum

The national power utility has found itself in a sticky situation awaiting the decisions of two authorities that could throw them a massive life line.

 

[Supervan II]

Members said that the turbines are only supposed to be used for emergency situations and that Eskom has already become too reliant on using them to keep the lights on instead of addressing the core generation concerns.

Backup means just that. To provide backup power whilst main units are being serviced (which never happened), but has been used to increase/maintain generating capacity.

Now we are being forced to pay for their f-ups.

 

[labratza]

well lets see they say NERSA is announcing today there view on tarrif hikes

 

[Kosmik]

Well thats just f****** stupid.

The DMRE noted that Eskom was not granted the wholesale diesel licence as it did not meet certain requirements. On 2 January, the DMRE, according to Eskom CEO Andre De Ruyter, said that it could appeal the decision to the minister of mineral resources and energy. Despite this, the appeal has not been received.

De Ruyter said that if the company could get the licence, it could save up to R6 a litre for diesel by making better diesel purchases or allowing the company to import fuel directly.

The DMRE said Eskom could take other avenues to deal with its diesel issues. It went on to say that Eskom could even cut costs by bypassing the fuel levy and road accident fund levy that is imposed on the fuel – by approaching the relevant authorities.

Why not let them buy wholesale or import. And tax? So government taxing itself? Only reason to not do it is kickbacks.

But core of the issue does remain, fix the problems so you don't use the expensive OGT.

 

[Paul_S]

Well thats just f****** stupid.



Why not let them buy wholesale or import. And tax? So government taxing itself? Only reason to not do it is kickbacks.

But core of the issue does remain, fix the problems so you don't use the expensive OGT.

Hit the nail on the head. I suspect if Eskom are allowed to import fuel directly it will bypass a whole bunch of patronage networks. Unless there are major environmental risks, there is no other logical explanation to sink an entire country's economy due to some red tape.

 

[LCBXX]

Well thats just f****** stupid.



Why not let them buy wholesale or import. And tax? So government taxing itself? Only reason to not do it is kickbacks.

But core of the issue does remain, fix the problems so you don't use the expensive OGT.