The FIX ESKOM thread

Syndyre

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So we generally agree on here that Eskom and the government's handling of the electricity crisis has been rather useless and even now that it's been declared an emergency they still don't seem to have any coherent ideas, so lets see if we can come up with anything better (shouldn't be hard) to show how it could be done. At least then we can't be accused of whining. :D:p

To start with:

Introduce a pricing system that differentiates between peak and off peak so that people are encouraged to use power during off peak times. Maybe even make it dirt cheap during the really quiet periods like 2 - 6am so people will use it then. Add a demand charge to that so that you're charged for the maximum amount of current you draw at any one time to encourage people to use less appliances simultaneously. Increase electricity tariffs to fund the necessary expansion but making the differential between peak and off peak substantial so people pay attention to it.

Disconnect all non-paying consumers, illegal connections etc. Offer them the 50 free units or whatever of electricity but offer them double that if they're prepared to use it during non-peak times.

Immediately cancel or renegotiate all major power consumption investment like aluminium smelters that can't be sustained at present. Ensure the rates they pay take into account the cost of generating the power so we're not subsidising them.

Encourage private companies to build power stations by providing them with tax incentives etc. and having Eskom sign long term agreements with them guaranteeing purchase of their power at a profitable price to encourage investment.

Build as many gas power stations, like the one built at Atlantis, as is necessary to satisfy short term demand, seeing as they can be constructed in around 18 months.

Begin construction of new base load nuclear power stations immediately to satisfy future demand.

Determine as far as possible the amount of coal available in the country to ensure that any future coal power stations that are built are sustainable.

Introduce a better subsidy program for solar water heaters so that people can effectively pay them off via a no/low interest loan over the amount of time it would take to get a ROI. Add this payment on to their monthly electricity account so their bill is effectively the same amount, they now just pay off the equipment rather than the electricity. Make this equipment mandatory in all new houses.

Allow people with solar panels, wind turbines etc. to feed power back into the grid and be paid for it.

If Eskom can't handle maintenance then contract it out to a private company who can, with guaranteed SLA's etc to ensure there's less downtime.

Immediately suspend all BEE/AA criteria and hire as many people as is necessary to do the job on merit only.

Fire the Eskom board, deputy president and Alec Erwin who are responsible for this crisis. Coincide this with a major PR campaign in which the facts are laid out honestly and a clear plan is put in place. Reassure business that this is a temporary, once off situation which will be fixed ASAP and is being taken seriously. Pay compensation where necessary.

Immediately cut off all neighbouring countries and only supply them with power when SA has a power surplus and no load shedding is occurring within SA. Make them pay in advance in US$ and use this forex to buy the equipment necessary for new power stations.

Pay export parity prices if necessary for coal to ensure continued availability and replenish reserve stocks to previous levels.

What do you guys think, what should they do?
 
Good post

So we generally agree on here that Eskom and the government's handling of the electricity crisis has been rather useless and even now that it's been declared an emergency they still don't seem to have any coherent ideas, so lets see if we can come up with anything better (shouldn't be hard) to show how it could be done. At least then we can't be accused of whining. :D:p

To start with:

Introduce a pricing system that differentiates between peak and off peak so that people are encouraged to use power during off peak times. Maybe even make it dirt cheap during the really quiet periods like 2 - 6am so people will use it then. Add a demand charge to that so that you're charged for the maximum amount of current you draw at any one time to encourage people to use less appliances simultaneously. Increase electricity tariffs to fund the necessary expansion but making the differential between peak and off peak substantial so people pay attention to it.
Agree - but I don't think that the equipment is in place for this complex billing arrangement, but should work towards this a a permanent thing

Disconnect all non-paying consumers, illegal connections etc. Offer them the 50 free units or whatever of electricity but offer them double that if they're prepared to use it during non-peak times.
Agree

Immediately cancel or renegotiate all major power consumption investment like aluminium smelters that can't be sustained at present. Ensure the rates they pay take into account the cost of generating the power so we're not subsidising them.
Agree

Encourage private companies to build power stations by providing them with tax incentives etc. and having Eskom sign long term agreements with them guaranteeing purchase of their power at a profitable price to encourage investment.
Agree - Eiskom have always been very strict in prohibiting others from generating power, but I guess that's changed now.

Build as many gas power stations, like the one built at Atlantis, as is necessary to satisfy short term demand, seeing as they can be constructed in around 18 months.
Agree - more gas turbine units, although costly to install and run, they have no option because this is the only quick solution

Begin construction of new base load nuclear power stations immediately to satisfy future demand.
Agree - the first coal one is getting underway near Ellisras, and new nuclear units should be built in the West Cape

Determine as far as possible the amount of coal available in the country to ensure that any future coal power stations that are built are sustainable.
I've always been under the impression that we have more than enough, and that's what was used when making the decision to export (in addition to the foreign $ earned

Introduce a better subsidy program for solar water heaters so that people can effectively pay them off via a no/low interest loan over the amount of time it would take to get a ROI. Add this payment on to their monthly electricity account so their bill is effectively the same amount, they now just pay off the equipment rather than the electricity. Make this equipment mandatory in all new houses.

Good idea

Allow people with solar panels, wind turbines etc. to feed power back into the grid and be paid for it.
This easier said than done - expensive equipment is required for the import/export power metering and control

If Eskom can't handle maintenance then contract it out to a private company who can, with guaranteed SLA's etc to ensure there's less downtime.
International power building and operating company AES has been trying to get into the market but this is hampered by the BEE and AA regulations and most likely the corruption had some influence. Due to the skills exodus, we will be forced to pay the big $'s to an international power services company

Immediately suspend all BEE/AA criteria and hire as many people as is necessary to do the job on merit only.
I think that there's no other option

Fire the Eskom board, deputy president and Alec Erwin who are responsible for this crisis. Coincide this with a major PR campaign in which the facts are laid out honestly and a clear plan is put in place. Reassure business that this is a temporary, once off situation which will be fixed ASAP and is being taken seriously. Pay compensation where necessary.
Agree

Immediately cut off all neighbouring countries and only supply them with power when SA has a power surplus and no load shedding is occurring within SA. Make them pay in advance in US$ and use this forex to buy the equipment necessary for new power stations.
Yes. A-Hole Alec was adamant that the neighbours would not get the chop

Pay export parity prices if necessary for coal to ensure continued availability and replenish reserve stocks to previous levels.

What do you guys think, what should they do?

Eskom power unit cost has bee very low compared to international prices, mainly due to having access to relatively cheap fuel. The consumers will need to adjust to higher a higher tariff :(
 
Last edited:
Get someone in

You'll have to import them. Because they left years ago
and all the others are on pension.
 
I pretty much agree with all of that except the building of nuclear plants. Im not personally convinced that this country can safely manage them.

I like the subsidies for solar in homes and I believe that legislation is coming into effect soon that makes it mandatory for new houses and businesses to have solar water heating with electricity backup. A proper government subsidy is definitely needed to get existing building onto solar.

As mentioned elsewhere, solar powered traffic lights and streetlights are also needed and there seems to be some movement in that direction.

However, all these things are to still not going to really address the big consumers: industry. Industry needs to use power more effectively.
 
Eskom power unit cost has bee very low compared to international prices, mainly due to having access to relatively cheap fuel. The consumers will need to adjust to higher a higher tariff :(

We will but expensive power is still very cheap compared to generators, UPS's etc. so we'd still be better off. Dlk001 said in another thread we might start to run out of coal around 2020 but I'm not really sure of the details, that's just why I put that in. Didn't realise intl power companies were already trying to get in, we really should give them whatever they need.

You'll have to import them. Because they left years ago
and all the others are on pension.

Either way we need them, whatever the cost.
 
I pretty much agree with all of that except the building of nuclear plants. Im not personally convinced that this country can safely manage them.

I like the subsidies for solar in homes and I believe that legislation is coming into effect soon that makes it mandatory for new houses and businesses to have solar water heating with electricity backup. A proper government subsidy is definitely needed to get existing building onto solar.

As mentioned elsewhere, solar powered traffic lights and streetlights are also needed and there seems to be some movement in that direction.

However, all these things are to still not going to really address the big consumers: industry. Industry needs to use power more effectively.

I think if we do build nuclear plants they need to be maintained and managed by the foreign firms like Areva that build them.

Industry would probably start using power more effectively if it became more expensive, that's the biggest incentive to do so, and they'd maybe delay power intensive activities till off peak hours if they were given substantial discounts to do so.
 
Daylight saving.
The difference between sunrise and sunset times on the east and west coast are significant.
We can split the peak requirement by instituting daylight saving to some degree.

Someone on moneyweb suggested a 4 day work week, if Eskom can guarantee consistent supply for that period, it would help keeping industry ticking over with some form of productivity. At the moment people are being paid for sitting in the dark.
Still would not help with 'peak' unless we all use less somehow.
 
Daylight saving.
The difference between sunrise and sunset times on the east and west coast are significant.
We can split the peak requirement by instituting daylight saving to some degree.

Someone on moneyweb suggested a 4 day work week, if Eskom can guarantee consistent supply for that period, it would help keeping industry ticking over with some form of productivity. At the moment people are being paid for sitting in the dark.
Still would not help with 'peak' unless we all use less somehow.

A 4 day work week would only work if everyone worked on different days, otherwise its still 4 days of peak. Maybe people will have to take their weekends on different days. :D
 
Introduce a pricing system that differentiates between peak and off peak so that people are encouraged to use power during off peak times.
Currently the majority of meters are only read once a month... some of them aren't read at all. To do this you'd need to install meters which are far more complex in order to bill people properly.

Add a demand charge to that so that you're charged for the maximum amount of current you draw at any one time to encourage people to use less appliances simultaneously. Increase electricity tariffs to fund the necessary expansion but making the differential between peak and off peak substantial so people pay attention to it.
so instead of a mechanical meter, you now have to install an electronic one which keeps track of several statistics? Just out of curiosity, how much do you think such a thing will cost per customer?

Encourage private companies to build power stations by providing them with tax incentives etc. and having Eskom sign long term agreements with them guaranteeing purchase of their power at a profitable price to encourage investment.
This suggestion has already been made elsewhere. It remains to be seen if Eskom will actually consider it. The main problem at the moment is that they're willing to pay about half the money for the power they get compared to the current prices they sell electricity at.

Begin construction of new base load nuclear power stations immediately to satisfy future demand.
I like this idea.

Determine as far as possible the amount of coal available in the country to ensure that any future coal power stations that are built are sustainable.
No such thing, and we really should be shying away from coal as fast as we possibly can.

Introduce a better subsidy program for solar water heaters so that people can effectively pay them off via a no/low interest loan over the amount of time it would take to get a ROI. Add this payment on to their monthly electricity account so their bill is effectively the same amount, they now just pay off the equipment rather than the electricity. Make this equipment mandatory in all new houses.
Gets my vote.

Allow people with solar panels, wind turbines etc. to feed power back into the grid and be paid for it.
And to be paid a fair amount for the power they contribute.

If Eskom can't handle maintenance then contract it out to a private company who can, with guaranteed SLA's etc to ensure there's less downtime.
This is already done to a degree.

Immediately suspend all BEE/AA criteria and hire as many people as is necessary to do the job on merit only.
Agreed.

Pay export parity prices if necessary for coal to ensure continued availability and replenish reserve stocks to previous levels.
Dunno about this one. Generally export parity prices include shipping costs, and it's not like the coal would actually be shipped anywhere.
 
Daylight saving.
The difference between sunrise and sunset times on the east and west coast are significant.
We can split the peak requirement by instituting daylight saving to some degree.

Someone on moneyweb suggested a 4 day work week, if Eskom can guarantee consistent supply for that period, it would help keeping industry ticking over with some form of productivity. At the moment people are being paid for sitting in the dark.
Still would not help with 'peak' unless we all use less somehow.
I was under the impression that the power we get wasn't neccessarily being generated all the time, but was also being stored in capacitors for later use.

Would be rather stupid if all the power generated at night was just wasted...

That said, I can recall being load shed on weekends. Not sure how much a 4 day work week would help.
 
Currently the majority of meters are only read once a month... some of them aren't read at all. To do this you'd need to install meters which are far more complex in order to bill people properly.


so instead of a mechanical meter, you now have to install an electronic one which keeps track of several statistics? Just out of curiosity, how much do you think such a thing will cost per customer?

No idea but the government has already announced plans to install new meters that use wireless technology etc. that can't be cheap either. Not saying any of this will be cheap, but we've reached desperation stage.

Dunno about this one. Generally export parity prices include shipping costs, and it's not like the coal would actually be shipped anywhere.

Excluding shipping costs obviously, Eskom needs to pay market rates for their coal if that's what it takes to get it, that's all I'm saying.
 
I was under the impression that the power we get wasn't neccessarily being generated all the time, but was also being stored in capacitors for later use.

Would be rather stupid if all the power generated at night was just wasted...

That said, I can recall being load shed on weekends. Not sure how much a 4 day work week would help.

The only way I know of that they store power is in hydro electric schemes but I don't think it amounts to much.
 
The only way I know of that they store power is in hydro electric schemes but I don't think it amounts to much.
That's correct.

No way of storing the AC power from the big power stations - they generate as per demand (well no so lately)
 
...or you might sit with a capacitor with the size of Jhb. I remember years ago they said that IF they could "catch" only ONE lightning bolt, it would serve Jhb for a couple of days...or something in that matter...
 
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