Eskom - an important lesson

Eskom - an important lesson

By Jack Ward, MD of Powermode

Continued rolling blackouts, as Eskom implements load shedding, are becoming as familiar as rush-hour traffic snarl-ups in Johannesburg. The cause is often unplanned emergency maintenance at the power utility’s main power stations, compounded by back-up diesel generators that persistently fail to come online when required. When they do, they consume diesel at around 500 tons/hour, requiring significant funding which adds to Eskom’s woes.

Earlier this year the then Eskom Chief Executive Tshediso Matona said:

“We need 5 000 MW in order to keep the lights on. But our equipment has become so bad, the risk of breakdown [from non-maintenance] is an ever-present problem. If we carry on, there will be a catastrophic breakdown.”

Public Enterprises Minister Lynne Brown is on record as saying that load shedding will be with South Africans for the next two years. “It is expected that the situation will continue throughout winter when consumption is higher. The constraints on the grid mean that planned, controlled and rotational load shedding and load curtailment are [in place] to protect the power system.”

It’s not good news. We’re in for a tough winter if Minister Brown’s prediction comes true. And there is no reason for it not to, as Eskom has once again called on all customers to reduce electricity usage as some running plants continue to experience partial load losses due to a lack of time for repairs.

Eskom’s tragic story represents an important lesson that the newly-appointed CEO Brian Molefe would do well to take heed of: If you don’t manage your assets, they’ll manage you.

Well-known management consultant and writer Emmanuel Iruobe says Eskom’s story can be summarised in four words – ‘failure to maintain infrastructure’. “Eskom has not stayed faithful to maintaining its infrastructure,” he stresses, adding that that South Africa’s economy is suffering from mismanagement and poor oversight.

He believes the recent need for Stage 3 load-shedding indicates that, of the nominal 40GW installed capacity (ignoring the diesel generators), South Africa is down to an availability of 27GW - while the country has reduced its general power demand to around 32GW.

“The trend indicates that only 20GW capacity will be available by early-2016, with a total of some 35 major generating units inoperable,” suggests Iruobe.

Let’s hope that Molefe has a serious and practical plan for addressing Eskom’s problems. What’s needed is competent, professional management. Is he the right man for the job?

Find us:

  

www.powermode.co.za