Eskom wants steeper price hike

Organised business has heard nothing from Deputy President Cyril Ramaphosa's "war room" and very little from Eskom about a long list of suggestions made six weeks ago to help alleviate the electricity crisis.

"There was no response from the war room," said Peggy Drodskie, acting CEO of the South African Chamber of Commerce and Industry, adding that it had not even received an acknowledgement of receipt of the proposed solutions.

The apparent sidelining of commerce and industry comes as:

Eskom's credit rating was downgraded to junk status;

Load-shedding resumed at the weekend;

Four Eskom managers, including CEO Tshediso Matona and chief financial officer Tsholofelo Molefe, were placed on suspension;

Reports emerged that the chairman of the parastal's board might be axed; and

Another potential hike in the electricity price looms.

After persistent delays by Eskom in bringing new coal-fired generating capacity online, the chamber of commerce and industry invited its members - among them the largest users of energy and the biggest employers in the country - to float immediate solutions to the electricity crisis.

The suggestions included everything from around-the-clock work shifts for the country to the docking of offshore power stations in harbours, to four different time zones for South Africa.

A prioritised maintenance plan was drafted for Eskom.

In February, these suggestions were passed on to both the "war room" and the power company.

Eskom acknowledged receipt, but - apparently too distracted by management issues - has not been in contact with the chamber about any of the suggestions.

Business leaders whom Ramaphosa met behind closed doors on Friday did not include officials of the chamber of commerce and industry. And, according to Ramaphosa's spokesman, Ronnie Mamoepa, Business Unity SA, under which the chamber falls, was also not invited.

Drodskie said the chamber had learned of the meeting in the media.

The organisation Ramaphosa met is Business Leadership South Africa, which has influential sitting and former chief executives as members.

"BLSA expressed its willingness to work with the government to restore public and business confidence in Eskom as the national electricity utility and in the economy at large," The Presidency said.

Former AngloGold Ashanti CEO Bobby Godsell is on the BLSA board. He and former Spoornet CEO Dolly Mokgatle were recently appointed to an energy council that will assist Ramaphosa's "war room".

Drodskie is optimistic about Godsell's involvement, saying that "if anyone can improve the situation, it's Bobby".

Eskom is trying to claw back the cash it is bleeding by having to run its open-cycle gas turbines for extended periods.

The company said on Friday it was discussing steeper price increases with the Treasury and the South African Local Government Association.

Already from April 1 direct Eskom customers will pay 12.69% more for electricity. The Saturday Star reported that Eskom intended to apply for a further 9.58% increase from the National Energy Regulator of South Africa. If it is successful, households can expect to be charged at least 22.27% more on their monthly electricity bills.

Interim measures to generate energy are vital as experts now believe the new power stations, Medupi and Kusile, will be completed only in the 2020s.

It is doubtful that there is progress on another, the Ingula Pumped Storage Scheme in KwaZulu-Natal. Energy expert Ted Blom said work at Ingula was probably at a standstill.

He said the need for maintenance on existing stations overshadowed everything else. Though Eskom's fleet of generators was running at about 75% of capacity at present, this could drop to 57% in the next two years if the pace of maintenance was not picked up, warned Blom.

-TJ Strydom