SANDTON, SOUTH AFRICA – JUNE 14: Eskom CEO Phakamani Hadebe during the National Union of Mineworkers (NUM) and (National Union of Metalworkers Union of South Africa (NUMSA) members protest at Eskom’s Megawatt Park, demanding salary increases on June 14, 2018 in Sandton, South Africa. Both unions have rejected Eskom’s proposed 0% wage offer and are demanding a 15% wage increase across the board and R2, 000 housing allowance increase, among other demands.(Photo by Gallo Images / Netwerk24 / Deaan Vivier)
Eskom running out of coal, warns of possible load shedding
Eskom says it’s implementing a contingency plan aimed at diverting coal supplies.
SANDTON, SOUTH AFRICA – JUNE 14: Eskom CEO Phakamani Hadebe during the National Union of Mineworkers (NUM) and (National Union of Metalworkers Union of South Africa (NUMSA) members protest at Eskom’s Megawatt Park, demanding salary increases on June 14, 2018 in Sandton, South Africa. Both unions have rejected Eskom’s proposed 0% wage offer and are demanding a 15% wage increase across the board and R2, 000 housing allowance increase, among other demands.(Photo by Gallo Images / Netwerk24 / Deaan Vivier)
South Africa’s national power utility, Eskom, is in the throes of a critical coal shortage which is threatening to halt operations at four power plants.
Things just keep getting worse for Eskom. If it’s not billions of rands wasted due to ‘irregular’ expenditure, it’s industrial action levelled at the company by disgruntled employees and fiery Trade Unions.
Eskom blames Gupta-linked Tegeta
But the issue which seeks to completely collapse the already unsteady power supplier is that of coal, or rather, the lack thereof. Eskom has released a worrying report stating that four of its power plants have less than 10 days’ supply of coal left.
Earlier in the year, Eskom confirmed that it was facing a dire coal shortage which had dropped its stockpiles in Mpumalanga to dangerously low levels. In August, Eskom CEO Phakamani Hadebe reported that nine power stations were affected by the shortage; a concern which was reported to the National Energy Regulator of South Africa (NERSA).
NERSA has labelled Eskom’s coal crises a cause for grave concern. Indeed, South Africans could potentially be plunged back into darkness, reminiscent of load shedding experienced in 2008 and 2014, which was also the result of insufficient coal supplies.
How did Eskom allow its coal supply to dwindle? The company signed a dodgy deal with Tegeta Exploration and Resources, a coal company linked the Gupta family. Tegeta, which is now under business rescue administration, is responsible for keeping Eskom’s coal reserves at adequate levels.
Eskom’s plan to redirect its coal supply
Needless to say, Tegeta is failing to keep its end of the deal. In fact, NERSA says that Eskom needs to have a minimum of 20 days of coal supply for all power stations at all times.
However, Khulu Phasiwe, a spokesperson for Eskom told SAFm radio Monday, that a contingency plan was being implemented in order to secure the supply of coal to embattled power stations.
According to Phawise, Eskom is planning on moving coal from its Medupi power plant in Limpopo to the facilities in Mpumalanga. Coal is to be transported via trucks. It’s also reported that Transnet has been called in to assist with the emergency transportation of coal stocks.
Phawise also confirmed that Eskom has signed new contracts with competent coal suppliers which should stabilise production by the end of the year.
