{"id":687853,"date":"2023-05-15T07:39:43","date_gmt":"2023-05-15T05:39:43","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=687853"},"modified":"2023-05-15T07:49:28","modified_gmt":"2023-05-15T05:49:28","slug":"eskoms-r30-billion-plan-to-avoid-stage-10-load-shedding-report","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/energy\/687853\/eskoms-r30-billion-plan-to-avoid-stage-10-load-shedding-report\/","title":{"rendered":"Eskom&#8217;s R30 billion plan to avoid stage 10 load shedding: report"},"content":{"rendered":"<p>Eskom will renegotiate its diesel budget with the National Energy Regulator of South Africa (Nersa) as it needs more money to burn fuel to accommodate the electricity minister\u2019s winter plan and the exemptions ordered by the nation\u2019s High Court, reported Bloomberg.<\/p>\n<p>On Friday (5 May), the Pretoria high court ruled in favour of 19 interest groups who sought urgent relief for specific sectors to be spared from load-shedding.<\/p>\n<p>According to court papers brought before the court, load-shedding was against South Africans\u2019 constitutional rights. The judge ordered the minister of public enterprises, Pravin Gordhan, to ensure that Eskom provides alternative sources of electricity to these institutions.<\/p>\n<p>Institutions in question included police stations, hospitals, schools and clinics.<\/p>\n<p>Eskom\u2019s interim spokesperson, Daphne Mokwena, said the utility was studying the judgment and had plans to challenge it but added that there were also plans to \u201crenegotiate the diesel plan with the treasury and Nersa to ensure the utility can cover for the shortfalls that will be experienced,\u201d <a href=\"https:\/\/mg.co.za\/environment\/2023-05-12-eskom-to-ask-nersa-for-more-diesel\/\" target=\"_blank\" rel=\"noopener\">reported<\/a> the Mail &amp; Guardian.<\/p>\n<p>\u201cThe utility is also working on the winter plan and is awaiting confirmation from Nersa to enable us to<strong> increase the diesel price from R8\u2009billion to at least R30\u2009billion<\/strong> in accordance with the minister of electricity\u2019s plan,\u201d Eskom said.<\/p>\n<p>\u201cThere was R8\u2009billion dedicated to purchasing diesel, and out of the R254\u2009billion relief funds for Eskom, R22\u2009billion would be directed to buy diesel,\u201d said electricity minister Kgosientsho Ramokgopa.<\/p>\n<p>Eskom uses diesel to power open-cycle gas turbines ( OCGTs) when outages and breakdowns occur at its coal-fired plants. The OCGTs make up for a shortfall in generation capacity and help the power utility to prevent the need for higher stages of power cuts.<\/p>\n<p>Plans to burn large quantities of diesel follow Ramokgopa\u2019s presentation in April, in which he <a href=\"https:\/\/businesstech.co.za\/news\/trending\/682717\/ramokgopas-plan-to-solve-load-shedding-is-more-diesel\/\" target=\"_blank\" rel=\"noopener\">proposed<\/a> to stave off deeper power cuts by increasing the use of diesel turbines, building more storage capacity to store the fuel, and extending the use of coal-fired units set for decommissioning over the next few years.<\/p>\n<p>According to a copy of a presentation seen by Bloomberg, Eskom would need to increase its budget for diesel. The plan showed that a special dispensation could reduce costs by allowing Eskom to purchase the fuel directly.<\/p>\n<p>According to the Mail &amp; Guardian, Ramokgopa told the National Council of Provinces on Tuesday (9 May) about the utility\u2019s plan to burn R30 billion of diesel and that more is needed to keep the lights on.<\/p>\n<p>\u201cThe question is not whether the fiscus can afford [a blackout] but whether the South African economy can afford it,&#8221; said Ramokqopa.<\/p>\n<p>\u201cWe have a choice of saving the billions to run open-cycle gas turbines and save the economy, or choose not to spend and allow the South African economy to collapse.<\/p>\n<p>\u201cOur principal occupation is saving the South African economy, especially the poor, who are disproportionately affected by load-shedding,\u201d added the minister.<\/p>\n<p>The utility\u2019s winter strategy is predominately reliant on its diesel plan, which is now being updated as the country enters colder months.<\/p>\n<p>If the plan to increase its diesel budget is not approved by Nersa, <strong>South Africa could see the utility implementing stage 10 load-shedding<\/strong>, said the Mail &amp; Guardian.<\/p>\n<p>Ramokgopa argued that money was available for the utility to use, but Nersa stood in the way.<\/p>\n<hr \/>\n<p>Read: <a href=\"https:\/\/businesstech.co.za\/news\/energy\/687783\/eskom-employees-arrested-after-spending-r940000-on-a-container-worth-r20000\/\" rel=\"bookmark\">Eskom employees arrested after spending R940,000 on a container worth R20,000<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Eskom plans to burn R30 billion and more in diesel to to cover for the shortfalls that will be experienced.<\/p>\n","protected":false},"author":10,"featured_media":681859,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9874],"tags":[1850,26,18055],"class_list":["post-687853","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","tag-bloomberg","tag-headline","tag-mail-and-guardian"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/687853","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\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=687853"}],"version-history":[{"count":7,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/687853\/revisions"}],"predecessor-version":[{"id":687897,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/687853\/revisions\/687897"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/681859"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=687853"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=687853"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=687853"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}