How South Africa could fix Eskom

Bradley Prior

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How South Africa could fix Eskom

South Africa’s government will announce within a month how it plans to fix Eskom Holdings SOC Ltd., the embattled state utility that supplies more than 90 percent of the nation’s power. There are no easy remedies.

The company is 419 billion rand ($30.9 billion) rand in debt, is losing money hand over fist, has way more staff than it needs and its aging and poorly maintained plants can’t always produce enough power to meet declining demand -- a predicament that’s known in the industry as a death spiral. [Bloomberg]
 

TelkomUseless

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supplies more than 90 percent of the nation’s power

and then 419 billion rand ($30.9 billion) rand in debt...

WTF man. Old CR won't do anything...
 

evilstebunny

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They'll announce at Sona, then bounce the announce later like with the SABC retrenchments. There's no fixing this place its like a sinking ship going down like a frown.
 

HennieWelkom

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The only solution to the Eskom problem is dA winning parliament.

The National Union of Metalworkers of South Africa has hit out at proposals to unbundle Eskom, reiterating it will resist all attempts to either break up the struggling power utility or privatise it.
who do these Unions think they are, they have no right to be dictating policy decisions, how will they resist it?
 

Gordon_R

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https://www.businesslive.co.za/bd/national/2019-01-31-eskom-planning-to-invest-up-to-r12bn-in-cost-plus-coal-mines/

Eskom has plans to invest up to R12bn in mines over the next five years to ensure the quality of its coal supply, its COO has said.

These will be cost-plus mines that Eskom would develop in return for long-term coal supply at cost, plus a modest margin.

Speaking at the IHS Markit South African Coal Export Conference on Thursday, COO Jan Oberholzer said previous decisions to stop investing in cost-plus coal mines had jeopardised a predictable supply for the utility.
 

ArtyLoop

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Could, would, should...
All meaningless, empty words..
ANC wants it the way it is for graft purposes,
 

Lupus

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Firstly get your non payers to pay or cut them off, stop supply places that don't pay. There's a good multi billion saving right there, cut your staff down to the right amount, stop paying management millions in bonuses.
 

SilverCode

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World Bank study found it to be 66 percent overstaffed.
Union of Mineworkers, which has warned that it will strike and shut down the national grid if there are retrenchments.
66% of Eskom workers should go on strike indefinitely.
 

H1TMANlol

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Go nuclear privately and close down Eskom . With eskoms debt, we could of had a nuclear plant by now
 

thestaggy

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We don’t think Eskom needs to retrench, we think Eskom needs to address its rising costs,” said Paris Mashego, an energy-sector coordinator for the National Union of Mineworkers
Like the large workforce that no doubt strikes every year for wage hikes?
 

Happy Days

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...a World Bank study found it to be 66 percent overstaffed. But cutting jobs is a politically charged issue, all the more so because President Cyril Ramaphosa is a former labor leader whose rise to power was backed by the country’s biggest labor organization. Unions that represent more than half of Eskom’s workers blame the utility’s financial woes on high coal prices and the fact that it’s required to buy renewable energy from independent producers.

“We don’t think Eskom needs to retrench, we think Eskom needs to address its rising costs,” said Paris Mashego, an energy-sector coordinator for the National Union of Mineworkers, which has warned that it will strike and shut down the national grid if there are retrenchments.
The highlighted shows why Eskom is not fixable with an ANC government. The political will is not there to do what's necessary. The whole issue will be kicked down the road as long as possible, until there's a total collapse. My guess is within the next five years.

The only way to resolve this is with a government that's not beholden to unions and have the will to tackle them head-on.
 

Gordon_R

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https://www.businesslive.co.za/bd/national/2019-02-01-breaking-news-eskom-secures-r15bn-loan-facility/

Eskom, SA’s debt-ridden power utility, says it has secured a R15bn loan facility from a consortium of local and international banks.

The power utility is in a dire financial position with negative cash flow and a debt burden of R419bn, which it is unable to service from revenue.

The state-owned company said in a statement on Friday afternoon the R15bn government-guaranteed facility would partly fund its capital expenditure programme.

“The conclusion of the facility will ensure that Eskom’s liquidity requirements for financial year 2018-2019 are timeously fulfilled, which is critical for business operations,” the company said.

Eskom has now secured about 95% of the R72bn funding requirement for the financial year, while the remaining 5% will be raised through domestic debt capital markets and other sources, it said.
 

Chuckmyster

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soon i will be offgrid, Tsek Eskom. Come find me and make me pay you and NERSA bux. pfftt, no chance
 
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