{"id":306202,"date":"2019-03-20T08:25:11","date_gmt":"2019-03-20T06:25:11","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=306202"},"modified":"2019-03-20T08:25:11","modified_gmt":"2019-03-20T06:25:11","slug":"eskoms-problems-are-financial-structural-and-operational-chairman","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/energy\/306202\/eskoms-problems-are-financial-structural-and-operational-chairman\/","title":{"rendered":"Eskom&#8217;s problems are financial, structural and operational: chairman"},"content":{"rendered":"<p>Malfeasance, coupled with aging infrastructure and decreasing expenditure on maintenance, have been blamed for Eskom implementing load shedding over the past five days.<\/p>\n<p>This emerged in what Public Enterprises Minister Pravin Gordhan and Eskom management termed a frank discussion on the country\u2019s current energy supply challenges.<\/p>\n<p>Addressing the media on Tuesday, Gordhan said the rolling blackouts were a result of aging power plants and maintenance that has been deteriorating due to maintenance expenditure.<\/p>\n<p>\u201cThis is a difficult time. Many people are frustrated because of the uncertainty around what is happening. We fully understand the frustration. We apologise for the burden that we are placing on South Africans at this point in time; [also] to the businesses &#8211; small and big \u2013 that are working under difficult circumstances in the current economic climate,\u201d the Minister said.<\/p>\n<p>He emphasised the importance of understanding where Eskom\u2019s challenges emanated, saying the entity was doing its utmost to normalise the situation.<\/p>\n<p>\u201cIt\u2019s going to be a huge struggle for us to overcome this emergency. We want to give the public as much information as we possibly can and have at our command so that we all have similar information.\u201d<\/p>\n<p>Gordhan pointed out that Eskom is an old organisation and thus has some historical elements. The unravelling State capture allegations have also crippled the power utility.<\/p>\n<p>Responding to questions of how long load shedding would last, Gordhan said the various committees and task teams were investigating the extent of deterioration at the country\u2019s power plants.<\/p>\n<p>\u201cAt this point in time, we are still trying to get a better grasp of the technical problems and other problems that the power stations are confronting. That is why there\u2019s the Eskom presidential task team that was created in January. Eskom board and management are developing a turnaround strategy and a nine-point operational plan,\u201d he said.<\/p>\n<p>This, he said, demonstrates government\u2019s eagerness and determination to resolve the problems identified and answer how long load shedding would last.<\/p>\n<p>\u201cThe answer to that question is that we need to complete these investigations and we will come back to you in the next 10 to 14 days\u2026\u201d the Minister said.<\/p>\n<p>Eskom board chairman Jabu Mabuza said the power utility\u2019s problems are financial, structural and operational.<\/p>\n<p>\u201cWe have tried to do what we call a clean-up. What is clear now is that there is money stolen. This is clear. It\u2019s clear looking at the financials that there has been no maintenance. The expenditure on maintenance was getting less and less until 2018. The question is how was money being spent? That is a matter for law enforcement.\u201d<\/p>\n<p>He pointed out that the commissioned units under construction power plants in Medupi and Kusile have not produced enough energy.<\/p>\n<p>\u201cThe one power station has one unit and the other has two but they keep tripping. We are in a situation of a gap and demand. The new plants are producing enough capacity and the old ones are too old,\u201d Mabuza said.<\/p>\n<p>He said over the past five years, expenditure on maintenance had decreased from R37 billion to R10 billion. Owing to low maintenance, power plants were beginning to \u201cfall apart\u201d.<\/p>\n<p>Eskom CEO Phakamani Hadebe said the power utility would over the next five years use R50 billion to maintain power stations.<\/p>\n<p>\u201cOver the next five years, R50 billion has been set aside. That will not only be dealing with generation because that\u2019s what we\u2019ve been concentrating on, but we\u2019ve taken a decision that if we don\u2019t deal with transmission and distribution, we\u2019ll be facing the same challenges we are with generation.<\/p>\n<p>\u201cGoing forward, we are to make sure that distribution and transmission are maintained,\u201d he said.<\/p>\n<hr \/>\n<p><strong>Read: <a href=\"https:\/\/businesstech.co.za\/news\/energy\/306188\/police-investigating-possible-load-shedding-sabotage-report\/\" target=\"_blank\" rel=\"noopener noreferrer\">Police investigating possible load shedding sabotage: report<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Malfeasance, coupled with aging infrastructure and decreasing expenditure on maintenance, have been blamed for Eskom implementing load shedding over the past five days.<\/p>\n","protected":false},"author":33,"featured_media":90548,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9874],"tags":[1164,26],"class_list":["post-306202","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","tag-eskom","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/306202","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=306202"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/306202\/revisions"}],"predecessor-version":[{"id":306204,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/306202\/revisions\/306204"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/90548"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=306202"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=306202"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=306202"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}