Page 5 - AfrElec Week 04

AfrElec COMMENTARY AfrElec
can’t be Eskom without recovering that cost in one way or another.”
Transmission
A second major issue de Ruyter has commented on is the unbundling of Eskom and creation of a new transmission system operator (TSO).
The 2019 Eskom Reform Roadmap calls for a separate transmission entity with its own board and management structure. This would take over people, systems, assets and debts form Eskom and would be created by new legislation. It would be responsible for power planning, pro- curement, contracts and transmission system operations (TSOs).
In comments this week, de Ruyter said it was “prudent” to initially pursue a divisionalisation of Eskom to create a prototype for independent operations.
This would involve creating shadow trans- mission companies that would still be part of Eskom in order the manage the risks associated with full legal separation.
During this initial phase it is likely that man- aging directors would be appointed across the three units – generation, transmission and distri- bution – but that they would continue to report to De Ruyter as CEO of Eskom Holdings.
Nevertheless, he agreed the ultimate objective of separation, as outlined in the government’s roadmap.
New management
Elsewhere, Public Enterprises Minister Pravin Gordhan last week raised the issue of the lack of high-quality staff at Eskom, with many having left over the last two years.
“The quality of our operators and power sta- tion managers declined,” he said, “and many are overseas, running power stations in places like
the Philippines.”
This was probably a reference to Avin Maha-
raj, who has recently been appointed head of the Kuslie power plant.
Maharaj left Eskom in 2017 to work at the Redondo Peninsula Energy company in the Philippines.
Kusile, as well as the Medupi power plants, is currently being built, but delays and budget overruns mean it will not be completed until 2023, eight years after the first completion date. Three of Kusile’s six units have been synchro- nised to the national grid, but are still at the com- missioning stage.
Looking ahead
Behind these developments, there continues to be political competition for influence at Eskom. Public Enterprises Minister Pravin Gordhan
is more pro-reform, while Mineral Resources and Energy Minister Gwede Mantashe, who is ANC party chairman and has close relations with the powerful trade unions, is not keen on unbundling and spinning out transmission.
In mid-January, ANC treasurer-general Paul Mashatile called for responsibility for Eskom to be moved from Gordhan’s Public Enterprises Department to Mantashe’s Energy Department.
Despite opposing political views, the fact remains that Eskom suffers from a lack of resil- ience in the generating and supply networks and cannot guarantee stable, long-term supplies to industrial and domestic customers.
Eskom, along with other large state-owned enterprises, can be seen as too big to fail, but in operational terms it has already failed, with load- shedding always on the agenda.
Nevertheless, the new CEO is talking about securing new cash and taking the first reform steps, which can be regarded as a positive sign.™
Week 04 30•January•2020 w w w. N E W S B A S E . c o m P5