Government forced Eskom to pay for emergency diesel at inflated prices

Jan

Jan

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Eskom forced to pay exorbitant prices for diesel

Eskom has been forced to pay exorbitant prices for diesel it buys in bulk from PetroSA, the financially distressed state-owned entity which is its main diesel supplier, even as the utility battles in vain to stave off worsening stages of load shedding.

The diesel is needed to power Eskom’s two open-cycle gas turbine (OCGT) power plants, Gourikwa and Ankerlig, which are effectively its emergency backup generators that can mitigate against two stages of load shedding if running at full output of 2067 MW.
 
Eskom has also been trying to obtain a wholesale diesel license from the DMRE, enabling it to procure and import diesel fuel directly, saving an estimated R4 billion annually. But the department has declined Eskom’s application.

There is speculation that the real motive for the DMRE’s refusal is to force Eskom to continue with its large diesel procurements through PetroSA at above-market prices, so as to mitigate the embattled liquid fuel trader’s deep financial and cash flow challenges.

The suggestions are that if Eskom were to obtain its own diesel trading or wholesale licence, PetroSA would face an unsustainable future and may fold.
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Oh great. So prop up a dying company with one that's pretty much dead.
 
Lmfao.........so the taxes iro RAF and fuel levies are still being factored in? Diesel is being burnt all over like never before and still this useless crowd say there is no money.
 
Cigamek said:
The fuel should in reality be supplied to Eskoms at cost.Petro.SA is no doubt owned by Ramaphosa,Tsepe,Gwede and family who are profiteering from this.Disgusting that they are allowed to do this to their own people.
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But people keep voting them in...

And yea.. no wonder AdR couldn't cut the BEE deals. Easy money flowing to connected cadres.
 
Eskom pays more per liter of diesel than joe soap at the petrol station.


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Eskom has also been trying to obtain a wholesale diesel license from the DMRE, enabling it to procure and import diesel fuel directly, saving an estimated R4 billion annually. But the department has declined Eskom’s application.

Uncle Gwede, we see you!!
 
wingnut771 said:
Yeah, they make it sound like someone is holding a gun to eskoms head.
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Technically National Treasury, DMRE and DPE do hold a gun to Eskoms head, just like Eskom holds a gun to the countries head.

Eskom needs those 2 government departments to continue operating since they hold all the licensing, regulatory etc power.
 
ToxicBunny said:
Technically National Treasury, DMRE and DPE do hold a gun to Eskoms head, just like Eskom holds a gun to the countries head.

Eskom needs those 2 government departments to continue operating since they hold all the licensing, regulatory etc power.
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Oh? What happens if eskom refuses to pay?
 
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