South Africans can choose between the pain of higher electricity prices to pay for Eskom\u2019s diesel, or power cuts and damage to the economy.<\/p>\n
Acting Eskom CEO Brian Molefe argued on Wednesday that the pain of people paying more was far less than the damage power cuts would cause to the economy.<\/p>\n
\u201cIf we don\u2019t have the diesel, then we go into load shedding sooner and it will be more severe,\u201d he said following a briefing on the state of the country\u2019s power system.<\/p>\n
The power utility was spending about R1.5 billion a month on diesel to power its open cycle gas turbines, and needed billions more to keep them running.<\/p>\n
Included in its latest request to the National Energy Regulator of South Africa for a 24.7% electricity tariff hike was the need for R10.9 billion to buy diesel for the gas turbines. The diesel purchases made up 6.4% of the proposed 24.7% increase.<\/p>\n
Running the open-cycle gas turbines added 2000MW to the grid and without it the country would get into stage 2 load shedding, he said.<\/p>\n
The 24.7% also included a 4.7% clawback.<\/p>\n
\u201cIt\u2019s money that should have been given to us in the previous year,\u201d he said. He criticised analysts for their \u201cunwelcome utterances in the media\u201d in not pointing this out.<\/p>\n
Read: Eskom doesn\u2019t need a massive price hike: CEO<\/a><\/strong><\/p>\n Meanwhile, Molefe is awaiting further instruction from government on if his tenure will be extended beyond July, Fin24 reported on Wednesday<\/a>.<\/p>\n \u201cI serve at Eskom at the pleasure of the board and the minister [of public enterprises] and I await further instruction,\u201d he said.<\/p>\n Molefe was appointed Transnet CEO in 2011 and seconded to Eskom in April this year.<\/p>\n Acting Eskom chairperson Ben Ngubane referred to Molefe as the \u201cvery successful CEO of Transnet\u201d and said the length of his tenure at Eskom was an \u201copen discussion\u201d.<\/p>\n \u201cWe are aware that his time is coming to an end, so probably these discussions will start soon,\u201d he said.<\/p>\n Eskom 25% price hike delayed?<\/a><\/strong><\/p>\nSource: Fin24<\/a><\/h3>\n
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