Eskom resorts to moving coal by road as blackouts loom

 

Eskom has started moving coal from its Medupi power station in Limpopo by road to Mpumalanga where 10 power stations have coal stockpile shortages.

 

Power stations are supposed to have enough coal to keep the lights on for 20 days.

The power utility said on Friday during a media briefing that it will transport 1.4 Mt (million tons) of coal by train per year from Medupi to the 10 affected power stations from next month.

The affected Mpumalanga power stations are Arnot‚ Camden‚ Duvha‚ Hendrina‚ Komati‚ Kriel‚ Kendal‚ Majuba‚ Matla and Tutuka.

“While we have a recovery plan‚ load-shedding cannot be ruled out for the remainder of 2018‚” Eskom said.

Eskom implemented emergency stage one load-shedding on Sunday before it was suspended at 7pm.

Energy expert Chris Yelland said it costs about R500 a ton to transport coal from Medupi to Mpumalanga whereas the coal itself usually costs about R300 to R350 a ton.

Yelland said Medupi might struggle to move coal from the Exxaro Grootegeluk mine near Medupi by either train or road to Mpumalanga because the rail link was running at capacity.

Energy expert Chris Yelland said it costs about R500 a ton to transport coal from Medupi to Mpumalanga whereas the coal itself usually costs about R300 to R350 a ton.

Yelland said Medupi might struggle to move coal from the Exxaro Grootegeluk mine near Medupi by either train or road to Mpumalanga because the rail link was running at capacity.

Steenbras power station operates via a hydroelectric pumped storage scheme used by the city to generate extra power at peak times or‚ if there is spare capacity‚ to offset the impact of stage one load-shedding.

BusinessLIVE reported (https://www.businesslive.co.za/bd/companies/energy/2018-11-16-eskom-adds-r1bn-to-diesel-bill-to-keep-the-lights-on/) that Eskom had applied to the National Energy Regulator of SA (Nersa) for an electricity tariff hike of 15% a year for the next three years.

A forensic report (https://www.businesslive.co.za/bd/national/2018-11-16-why-the-hawks-must-probe-eskoms-illegal-deal-with-guptas-tegeta/) commissioned by the National Treasury on Friday recommended that the Hawks investigate a coal-supply agreement (CSA) between Eskom and Gupta-owned Tegeta in which it found irregularities and illegalities.

The report by Fundudzi Forensics found that senior Eskom executives and officials had also violated anti-corruption laws with a R659m “prepayment” to Tegeta.

The damning report on the wanton abuse of process comes as Eskom faces coal supply challenges. The parastatal reportedly admitted in November that its supply problems stem from mines run by Tegeta Exploration and Resources.

The report recommends criminal investigations into the likes of former Eskom officials Matshela Koko‚ Anoj Singh and Suzanne Daniels‚ as well as board members over the prepayment. It recommends that Singh and Koko also be investigated for misrepresenting facts on the matter to parliament.

Click to access StateSystemBriefing16Nov2018.pdf

Nico Gous

 

 

 

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