Problems faced by Eskom are because of poor plant maintenance - Outa

The Organisation Undoing Tax Abuse (Outa) has called for bold interventions to minimise load shedding as Eskom battles to keep the lights on.

The utility implemented stage 4 load shedding on Monday, which means the state-owned power utility will start additional, unscheduled power cuts wherever it needs to and outside of its schedules.

READ: Eskom announces stage 4 load shedding

Outa says stage 4 signals a dire situation for Eskom’s energy generation and raises serious concerns for the economy.

Energy Activist and Outa’s energy portfolio manager, Ronald Chauke says the problem at the utility is because of poor plant maintenance.

The programme which they used for maintenance, they kept on deferring it instead of doing the critical maintenance and unfortunately, the money budgeted for maintenance was used for purposes not intended for.

Ronald Chauke, Energy portfolio manager - Outa

So it is a combination of what you can call poor management, lack of direction, lack of accountability and Eskom failing to take into account the sensitivity of the age of the coal fired power stations. Most of those plants have reached more than their 50 year life cycle.

Ronald Chauke, Energy portfolio manager - Outa

It's like you driving a car over and over again without taking it to service, unfortunately it will give in and you will find yourself on the side of the road.

Ronald Chauke, Energy portfolio manager - Outa

Chauke says the utility is not generating sufficient revenue to cover its own operational costs.

Basically they are living from hand to mouth. Why are we not applying clean corporate governance, meaning that we need to live within our means.

Ronald Chauke, Energy portfolio manager - Outa

Click on the link below to hear the full conversation...


Recommended

by NEWSROOM AI
Read More
Food prices are about to start climbing thanks to Eskom

Food prices are about to start climbing thanks to Eskom

Nicol Jansen from Agri SA warns of rising food price inflation if the crisis continues for much longer.

How the Eskom crisis (now in its 12th year) became an existential threat to SA

How the Eskom crisis (now in its 12th year) became an existential threat to SA

The Money Show's Bruce Whitfield interviews George Glynos (Head of Research at ETM Analytics).

South Africa just became the world’s hottest destination for oil exploration

South Africa just became the world’s hottest destination for oil exploration

The Money Show’s Bruce Whitfield interviews Stephen Larkin, CEO at Africa New Energies.

Bring back Brian Molefe? Load shedding woes spark debate on Eskom leadership

Bring back Brian Molefe? Load shedding woes spark debate on Eskom leadership

Load shedding frustration has left South Africans on Twitter debating whether Eskom was better or worse under ex-CEO Brian Molefe.

Cosatu: Slight unemployment drop 'not enough', concerns about Eskom unbundling

Cosatu: Slight unemployment drop 'not enough', concerns about Eskom unbundling

The unemployment rate has decreased slightly to 27.1% in the fourth quarter.

[LATEST] The aim is to eliminate load shedding by Thursday - Eskom

[LATEST] The aim is to eliminate load shedding by Thursday - Eskom

Eskom's demand management senior general manager Andrew Etzinger gives an update about load shedding.

Popular articles
How to buy your first share (even if you only have R50, or less)

How to buy your first share (even if you only have R50, or less)

Got R50? No? Got R5? Personal finance expert Warren Ingram on how to buy shares with tiny amounts of money.

New Ipsos poll shows ANC winning 2019 election, rates Ramaphosa a vote puller

New Ipsos poll shows ANC winning 2019 election, rates Ramaphosa a vote puller

Senior client officer at Ipsos, Mari Harris says President Cyril Ramaphosa's trust index is higher than other leaders.

FMF trauma will take years to overcome - award-winning activist Fasiha Hassan

FMF trauma will take years to overcome - award-winning activist Fasiha Hassan

Hassan won an international peace prize for her role in Fees Must Fall campaign. She spoke about the student movement and more.

46 women rescued in Joburg sex trafficking raid

46 women rescued in Joburg sex trafficking raid

An expert on human trafficking explains how the syndicate operates and how women are lured into dens.

Competition Commission investigates five companies to stamp out price-fixing

Competition Commission investigates five companies to stamp out price-fixing

Commission says investigation into food and agro processing companies is important because of high levels of inequality in SA.

Why is Mauritius rich and Madagascar poor?

Why is Mauritius rich and Madagascar poor?

Comparing Madagascar and Mauritius – a tale of two islands, by the Gordon Institute of Business Science's Dr Lyal White.

 Motshekga to implement 'consequence management' at catastrophic schools

Motshekga to implement 'consequence management' at catastrophic schools

Basic Education Minister Angie Motshekga has called South Africa's education system a "national catastrophe" and a "crisis".