Page 12 - AfrElec Week 15

AfrElec
NEWS IN BRIEF
AfrElec
on the show, Oduntan said it would cost the government NGN120bn to provide free electricity for two months.
“I think the cost of supplying electricity for two months will not be less than NGN120bn,” he said.
He said that discussions on the free energy between the Federal Government
and the Association of Nigerian Electricity Distributors (ANED) have not been finalised.
He said, “We are aware of ongoing discussion, and we can not talk about what has not been concluded, approved or finally agreed upon.”
Oduntan also said there’s been a general improvement in electricity supply in Nigeria in the last three weeks.
RATINGS
Fitch downgrades Eskom’s IDR to B+; outlook negative
Fitch Ratings has downgraded Eskom’s Long-Term Local-Currency Issuer Default Rating (IDR) to B+ from BB- with a Negative Outlook.
Fitch has also downgraded the senior unsecured debt to B+/RR4 from BB- and the senior unsecured guaranteed debt to BB from BB+.
The downgrade and subsequent Negative Outlook for Eskom follows that of the sovereign, South Africa (BB/Negative).
Eskom’s rating is driven by that of the sovereign (top-down -2 notches) due to our view of the strength of the links between Eskom and the state under our Government- Related Entities Rating Criteria.
The continuing equity support, together with the implicit support afforded by a 10-year
government budget framework, highlights the strong links between the government and Eskom.
Eskom has so far ensured continuation
of all its operations, because electricity and the supply of coal are classified as essential services by the South African government. However, we expect revenue, volume and receivable collections to be adversely affected by the coronavirus pandemic, partly mitigated by decreasing primary energy costs related to lower use of expensive open-cycle gas turbine (OCGT) generation capacity and lower legacy maintenance capex. Eskom management estimates the adverse impact on revenues and collections to be totally about ZAR5bn for the initial 21 day lockdown.
FITCH
ESKOM
Eskom’s Magoro to lead South Africa’s IPP Office
The Development Bank of Southern Africa (DBSA) has announced the appointment of Tshifhiwa Bernard Magoro as the new Head of the Independent Power Producers Office (IPPO) in South Africa.
The appointment is effective from 1 May 2020. Tshifhiwa is currently the General Manager of the Eskom System Operator and Eskom Telecommunications, responsible for ensuring the integrity of the South African electricity grid.
His responsibilities at Eskom include managing real-time electricity supply and demand balancing.?
According to the DBSA, Tshifhiwa’s appointment comes after a rigorous recruitment process and on the recommendation of an interview panel,
which consisted of representatives from the Department of Mineral Resources and Energy, the National Treasury’s Government Technical Advisory Committee and the DBSA.
The South African Wind Energy Association (SAWEA) believes that the well- established nature of the REI4P programme, combined with Magoro’s experience in the energy sector, will enable a smooth transition to the new leadership of the IPP Office and ease the implementation of the IRP 2019.
“Magoro is well qualified for the role and brings along over 20 years of technical, managerial and leadership experience in the sector, in addition to having played a direct role in the REI4P’s development and enforcement of the first renewable grid code in South Africa,” said SAWEA CEO Ntombifuthi Ntuli.
Eskom probe clears COO Jan Oberholzer
An investigation into Eskom’s Chief Operating Officer Jan Oberholzer has found no evidence of wrongdoing, the power utility said on April 15.
The probe commenced on March 20 this year, following what Eskom’s board described as a series of allegations of “corruption, dishonesty, conflict of interest and abuse of power” against Oberholzer in the media and by certain civil society organisations.
Eskom appointed an independent legal expert to investigate the allegations after Oberholzer had been accused of victimising a subordinate who made a submission to Zondo commission of inquiry into state capture about wrongdoing at the utility.
Allegations against Oberholzer were submitted by the civil organisation Corruption Watch and the South African Federation of Trade Unions (Saftu) in letters to Eskom.
Eskom said in a statement on Wednesday that the probe had found “no basis” to the allegations.
“On all the other allegations against Mr Oberholzer that were put before the senior counsel, the Board is satisfied that these have been fully and adequately ventilated and investigated, and that there is no cause for any action against Mr Oberholzer.”
The investigation looked into, among other things, whether there was any undisclosed conflict of interest by Oberholzer relating
to construction company Stefanutti Stocks
or any other entity which could have led to breaches in Eskom policy. It also examined whether, since Oberholzer returned to Eskom
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Week 15 16•April•2020