JOHANNESBURG — With news that Eskom is anticipating to load shed during the early January once more, it appears that the energy that is embattled dark times are far from over. The organization is saddled with huge financial obligation and incredibly dirty, outdated coal plant technology. It’s a financial catastrophe waiting to occur. But because SA is plagued by monopolies (together with ANC federal government is intent on perpetuating them) South Africans sit with a massive issue on their arms that’s been needlessly self-created. Nonetheless, you can find a lot more than capable individuals inside Eskom while the COO Jan Oberholzer seemingly have a feeling of rationality pertaining to the continuing future of the power company that is state-owned. In this meeting, EE publishers Chris that is’ Yelland Roger Lilly swept up with him. – Gareth van Zyl
By Chris Yelland and Roger Lilley*
A energizing openness by Eskom’s brand new administration has been demonstrated in a special meeting with Eskom COO Mr Jan Oberholzer by EE writers. The meeting implemented dramatic developments into the operations of Eskom in 2010, like the decrease into the utility’s generation plant performance, shortages of coal at energy channels in Mpumalanga, the return of phase 2 (2,000 MW) load that is shedding rolling blackouts in the united states for per week ahead of the xmas yuletide season, together with statement because of the COO of a nine-point intend to deal with the functional dilemmas.
Mr Oberholzer, please is it possible to make clear the functions and lines of authority involving the Eskom CEO, COO, CFO as well as other Eskom Exco users? whom reports to who?
Eskom’s structure that is new constructed on three pillars: strategy, finance and operations. Generally speaking, CEO Phakamani Hadebe could be the face of Eskom, in charge of strategy, appropriate and business affairs, hr and reputation administration. CFO Calib Cassim accounts for the income, liquidity, finance, loans, treasury, assets, property, different help solutions and general economic control. As COO, i will be in charge of all Eskom’s operations: generation 
, transmission and circulation of electricity, main energy, coal and water, team money (which include new-build tasks), Rotek Industries, Eskom Enterprises, Eskom Research, Testing & Development (RT&D), danger and sustainability, and others. Eskom has recently ready a brand new exco organogram, and I also will share this with you whenever finalised.
Exactly what are the biggest dilemmas presently dealing with Eskom, which dilemmas have you been in charge of, and exactly just just what keeps you awake through the night?
The largest dilemmas dealing with Eskom are: financial obligation, liquidity and sustainability that is financial individuals problems – with individuals being our most critical asset, ensuring sufficient coal materials, decreasing generation plant performance and accessibility – triggered by planned upkeep outages, unplanned breakdowns and plant operating with reduced production than ranked, and fast-rising municipal and Soweto arrear debt. From my place, my best issues will be the bad generation plant performance, ensuring adequate coal materials when confronted with high export costs, plus the chance of rainfall at the moment. Although we involve some 45GW of installed generation ability at our disposal, we actually have actually lower than 30GW of available capacity – plus the country’s load is more than 30GW. Therefore, for the time being, our company is grateful for the holiday season where need is paid off. About the individuals dilemmas, my concerns are to make certain accountability by line supervisors, and having the best people who have the proper mixture of abilities within the right spot, specially within generation.
Some will say the functional problems at Eskom could be addressed provided adequate work, money and time, but that the economic and ecological problems presently dealing with Eskom are intractable. Can you concur?
Yes, i actually do agree totally that we have the money and the right people, we can resolve the operational issues – no doubt about that if we are diligent, and. But running in a world of serious economic constraints, massive financial obligation and quickly increasing municipal and also worldwide arear financial obligation is a large challenge, as well as the CFO could be better positioned to comment further with this. On ecological sustainability, you will find huge dilemmas associated with the burning of coal. Can we simply trade our way to avoid it associated with the situation that is current? No, we believe we’re going to need to do some things extremely differently towards the means they are done before – structurally, economically and environmentally.
Do you really think Eskom could be came back to its previous glory, or perhaps is this a backward looking pipe-dream in the basically changed and changing realm of energy?
No, we don’t think days gone by could be recaptured with Eskom keeping its present type being a vertically incorporated monopoly. Can Eskom enhance its reputation, confidence and performance? Yes, I think we are able to, but we now have plenty of work to do to accomplish this, including training and abilities development. The entire world changed notably since those days that are past and you will find pressures for improvement in the vitality sector. The existing framework as a vertically incorporated company and solitary electricity customer may possibly not be the structure that is best and business design for future years, and stress from industry w209
ill force Eskom to alter to match the brand new realities. Our president, Mr Jabu Mabuza, has recently stated that the Eskom operations of generation, transmission and circulation might in the future be ring-fenced and addressed as independent devices with a small business focus, with line supervisors empowered to really make the necessary choices for success, and held responsible for the outcomes.