Tuesday , June 15 2021

Eskom will cease to exist without saving the government, hear MPs

Parliament – Eskom was technically untenable and will cease to exist in April this year without rescuing the government, MEPs said on Wednesday.

Government officials have informed Parliament's Public Affairs Portfolio Committee about the state of the energy company that is currently in crisis due to power plant disruptions that have led to the unloading of rotation and power cuts.

Putin Shuman, the general manager, said the current crisis has followed years of mismanagement, corruption and poor decision-making among a number of other failures.

Shaman depicts MPs with a diagnosis of the operational and financial crisis in which the energy company is located.

He said that the money generated at the enterprise did not cover the cost of servicing and servicing the debt, and the number of employees had increased from 32,000 to 48,000 between 2007 and 2018, with related costs rising from 9.5 billion to 25.9 billion, while municipal debt rose by about R1 billion a month.

From an operational point of view, an aging generation fleet that is not properly managed, coupled with shortcomings in the design of the two newest coal-fired power plants – Medupe and Kusile – which only operate at 40% capacity, exacerbated the situation, resulting in disruptions and subsequent power outages.

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