Huge cost as Eskom’s woes grow

[caption id="attachment_75078" align="alignright" width="300"] Lynne Brown[/caption]

Loss of billions to economy revealed on bad day at office for power utility

ESKOM was staring down the barrel yesterday amid a leadership struggle, a strike at its flagship power station and another round of power cuts as the government revealed the hundreds of billions of rands that load-shedding was costing the economy.

Yesterday saw construction on South Africa’s multibillion-rand Medupi power station brought to a halt through a strike.

It also was a day when Public Enterprises Minister Lynne Brown admitted she was deeply concerned with how the parastatal was being run, as rumours circulated that Eskom’s board was in a meeting ousting their chairman.

The strike at Medupi caused 21 000 workers to walk off the plant. It was over the employment of foreign workers, non-payment of completion bonuses and forced removals from housing. Strikers stoned offices, amid threats to sabotage the site.

National Union of Metalworkers of South Africa organising campaigns and collective bargaining department head, Steve Nhlapo, said: “Black artisans and general workers are being unfairly targeted. While their white counterparts stay in decent accommodation, blacks are being forced to live in hostels. Eskom blames its subcontractors, who blame Eskom. We don’t care who is to blame. We want the situation reversed.”

Eskom spokesman Khulu Phasiwe said strikes over the past three years had set the construction project back by a year.

“While a one-day strike does not have a serious effect, the accumulative effect of these days is very big.” He said they were not aware of the workers’ allegations, which would be dealt with.

Meanwhile in parliament, Brown told the public enterprises committee that load-shedding had cost the economy between R20-billion and R80.1-billion a month.

She also admitted yesterday that she had asked for legal opinion from her department on how she could legally intervene in Eskom’s affairs.

She said that as a shareholder she was responsible for the company but was not allowed to interfere politically‚ operationally or managerially in its running.

Eskom’s board was reported to be meeting yesterday to remove chairman Zola Tsotsi. However, Eskom’s media desk and Deputy President Cyril Ramaphosa denied such a meeting was taking place.

Brown said she would take a decision on the removal of Tsotsi as chairman once she received a resolution from the board.

The National Union of Mineworkers accuses Tsotsi of interfering with the awarding of tenders. If he is ousted‚ Reuters reports, he would become the latest casualty after the chief executive and three other senior executives were suspended earlier this month.

Eskom announced yet another round of stage 2 load-shedding yesterday.

Answering questions in the National Council of Provinces, Ramaphosa said South Africa needed cool heads and strong will to solve the power problems.

He said he would convene a summit that would include labour, business and Eskom to discuss the issues around electricity provision.

Energy analyst Ted Blom said: “Until spare capacity is generated, vital maintenance . . . cannot begin.”

-Graeme Hosken, Bianca Capazorio, Linda Ensor and Shaun Smillie