Eskom board chair Jabu Mabuza has cited management issues and varying inefficiencies at the parastatal, saying liquidity problems at the company will need a lot of time and effort to resolve.
Mabuza was responding to questions and criticism around Eskoms requested 33% hike as part of it's plan to recover tens of billions of rands lost to coal procurement, as well as the lower than expected electricity sales between 2014 and 2017.
Former senior Eskom executive and a partner at Mining & Energy Advisors, Ted Blom says with the introduction of renewable energy, the parastatal may need a 50% tariff increase by next year.
I started off with 20 but now with all these renewables coming online, Eskom is probably going to need 30% this year and 50% next year.— Ted Blom, Former senior Eskom executive and a partner at Mining & Energy Advisors
Mabuza says he welcomes Blom's analysis and has invited him to share his insights with the company,
None of us want to come across and say we have answers, all that we have is South Africans who are willing and able to tackle what is a national problem which is very systemic. I would welcome the opportunity to sit, listen to him and get whatever help we can get.— Jabu Mabuza, Eskom board chair
We want people like him to come forward and say I know this job and where the solutions are and this is the role I am willing to play.— Jabu Mabuza, Eskom board chair
Responding to issues around the tariff hike, Mabuza had the following to say.
We are supposed to go back to Nersa and ask that revenue clearing account which amounts to R66 billion, so I don't want to go into the details of that, other than confirming that it is what is being provided for.— Jabu Mabuza, Eskom board chair
At a point we need to actually establish what was the under collection. over expenditure, what was that which was corrupt, what quantity of that was corrupt, where is it and how can it be recovered.— Jabu Mabuza, Eskom board chair
The problems are deep long and running far wide in the organisation. At the end of the day there are a lot management, capital structure, operating model issues....there is a lot of our inefficiency. We have to look at everything and wherever it is in our systems, the problems of Eskom are just too big and wide.— Jabu Mabuza, Eskom board chair
Click on the link below to listen to the full conversation...