Page 6 - AfrElec Week 25

AfrElec FUELS AfrElec

Fuel consumption falls in Ethiopia

ETHIOPIA THE head of the Ethiopian Petroleum Supply imports. EPSE had originally planned to import
Enterprise (EPSE) noted last week that domestic 679 tonnes of diesel in the same three-month
petroleum product consumption had declined period, including 228 tonnes in March, 224
significantly as a result of the coronavirus tonnes in April and 227 tonnes in May, he said.
(COVID-19) pandemic. Instead, it imported 607 tonnes, or 210 tonnes
According to Tadesse Hailemariam, the CEO in March, 202 tonnes in April and 195 tonnes in
of EPSE, Ethiopia is currently consuming about May.
2mn litres per day of gasoline, 8.5mn lpd of diesel Jet fuel imports sank even more dramatically,
and 1mn lpd of jet fuel. Before the outbreak, he he noted. EPSE had been scheduled to take deliv-
told The Reporter, consumption levels had aver- ery of 220 tonnes of jet fuel during the March-
aged 2.2mn lpd for gasoline, 9mn lpd of diesel May interval, including 71 tonnes in March, 74
and 2.6mn lpd of jet fuel. tonnes in April and 75 tonnes in May. In the end,
He explained the lower consumption lev- though, it imported only 29 tonnes of jet fuel in
els were a result of the lockdown measures and March and then did not import any at all in April
the slowdown in economic activity. EPSE has or May.
responded to the shift by scaling back purchases “We used to bring two vessels of jet fuel [per
of fuel from foreign suppliers, he said. month],” Tadesse told The Reporter. “In March,
The state-run body had intended to import we had only one fuel tanker carrying jet fuel. In
a total of 148 tonnes of gasoline between March April and May, we did not order for any ship-
and May, bringing in 50 tonnes in March, 49 ment. We have been using the jet fuel imported
tonnes in April and 49 tonnes in May, he said. in March.” The country has not needed to buy
Instead, he stated, it imported 126 tonnes, or any more jet fuel because the national airline,
45 tonnes in March, 39 tonnes in April and 42 Ethiopian Airlines, has grounded 90 of its planes
tonnes in May. and is only operating cargo flights, he said.™
Tadesse reported a similar drop in diesel

ESKOM

Eskom’s debt is its biggest challenge

SOUTH AFRICA ESKOM’S ZAR450bn ($26bn) debt is its biggest “I regard the unions as an ally, and we have
challenge, said CEO André De Ruyter, with ser- built a good relationship with them so far,” he
vicing costs reaching ZAR28-29bn ($1.6-7bn) said.The unions are traditionally close to parts
per year. The company posted a loss of ZAR20bn of the ruling ANC that are against any reform
($1.2bn) in 2019, with a similar result forecast for of Eskom.
2020, he said this week. De Ruyter confirmed that the coronavi-
“I do not think there is one silver bullet that is rus (COVID-19) lockdown had given Eskom
going to fix the Eskom debt challenge,” said De some breathing space to carry out essential
Ruyter. maintenance.
The company must face a number of pressing As a result, there have only been three days of
issues, including avoiding load-shedding, which load-shedding during the lockdown.
will in turn shore up electricity sales. However, the risk of more power cuts
The state-owned utility must also resolve remains, as some of the country’s elderly coal-
tariff disputes with the National Energy Regu- fired power stations must be taken offline for
lator of South Africa (NERSA) in a bid to charge maintenance.
cost-reflective tariffs. The company must also De Ruyter also welcomed more competition,
improve payment discipline by municipalities, especially from renewables, in South Africa’s
which would also increase revenues. power sector.
However, De Ruyter also stated that Eskom “The notion of a just energy transition is
must now take a full part in the energy transi- important,” said De Ruyter. “We need to struc-
tion. The utility, which is 86% dependent on coal, ture ourselves in such a way that we can attract
is now making detailed plans to paly its part in that private investment to come in and compete
driving renewables in South Africa. and give us the most effective way of generating
Speaking to South African media, De Ruyter electricity in South Africa.”
was confident about Eskom’s relations with “Over time I think the energy industry in SA
the unions, which have been rocky, as they are will transition far more into the renewable space,
against the proposed unbundling of the com- and we will see far more private investment com-
pany into transmission, distribution and supply ing into the generation space,” he said.™
units.

P6 www. NEWSBASE .com Week 25 25•June•2020