{"id":370797,"date":"2020-10-17T13:05:33","date_gmt":"2020-10-17T11:05:33","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=370797"},"modified":"2020-10-17T13:06:09","modified_gmt":"2020-10-17T11:06:09","slug":"how-eskom-really-operates","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/energy\/370797-how-eskom-really-operates.html","title":{"rendered":"How Eskom really operates"},"content":{"rendered":"

As the main supplier of electricity in South Africa, Eskom is the most important state-owned enterprise and a cornerstone of the country\u2019s economy.<\/p>\n

Without a stable electricity supply, it is impossible for the economy to grow, create jobs, and alleviate poverty.<\/p>\n

There is, however, a problem. Years of corruption and mismanagement have gutted the company, which is now saddled with a mountain of debt.<\/p>\n

Eskom has also lost the ability to provide South Africa with a stable electricity supply, and load-shedding has become part of daily life.<\/p>\n

So severe are these problems that the government had to intervene on multiple occasions to stem the deterioration at the company.<\/p>\n

Most of these interventions came to nothing. This has, however, not stopped the government from launching a new turnaround plan and a new \u201cwar room\u201d to implement this plan.<\/p>\n

How Eskom functions<\/h3>\n

There are many different groups tasked with fixing Eskom, which include the board, the Department of Public Enterprises, the ministerial technical task team, and the former \u201cwar room\u201d.<\/p>\n

Speaking to Business Day TV, Eskom CEO Andre de Ruyter explained how all of these parts fit together in the company\u2019s operations.<\/p>\n

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  1. Eskom Holdings SOC Limited is the legal entity of which de Ruyter is the CEO.<\/li>\n
  2. Eskom has a board, which is chaired by Professor Malegapuru Makgoba. De Ruyter reports to this board.<\/li>\n
  3. The Eskom board reports to its shareholder, which is the Department of Public Enterprises which is headed up by Minister Pravin Gordhan.<\/li>\n
  4. Minister Gordhan is assisted by a technical task team which consists of experts in electricity generation, data analytics, and operational matters.<\/li>\n
  5. The Political Task Team, formerly known as the Eskom War Room, assists the company with its turnaround strategy. It is chaired by Deputy President David Mabuza.<\/li>\n<\/ol>\n

    De Ruyter said the Political Task Team meets on a fortnightly basis and is a valuable tool to address roadblocks experienced in the turnaround strategy.<\/p>\n

    The issues which are typically addressed include municipal debt and National Energy Regulator of South Africa (NERSA) determinations.<\/p>\n

    The graphic below shows how Eskom operates.<\/p>\n

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    Eskom CEO Andre de Ruyter interview<\/h3>\n