Parties agree to delay PPA signing for now

Contrary to earlier media reports, the High Court in Pretoria has not granted an interdict preventing Eskom from signing the 27 outstanding power producer agreements (PPAs). Instead, the court decided to postpone the matter until 27 March when the matter will be heard in full. The minister of energy, Jeff Radebe, announced on 8 March […]

Eskom gets another S&P downgrade following 2018 Budget

S&P Global Ratings has again downgraded the long-term debt of Eskom. The power utility’s debt has been rated ‘CCC+’, the seventh rung of non-investment grade, with a negative outlook. It was previously classed as ‘B-‘, the sixth rung of junk debt. In a media statement S&P said the cash-strapped power utility remains at risk of a default in […]

Thabametsi coal plant given go ahead despite staggering climate impacts

On 30 January 2018, Edna Molewa, the minister of environmental affairs, issued a long-awaited decision in relation to the environmental authorisation for the Thabametsi coal-fired power station. The Minister has decided that – despite the undisputed evidence of the significant climate impacts of the power station, and a landmark judgment of the High Court last year, […]

Presidency tackles Eskom’s governance, appoints new board

The government has announced a number of measures to strengthen governance at Eskom, including the appointment of new board members and the stabilisation of management at the electricity-generating parastatal. This follows a meeting of President Jacob Zuma, Deputy President Cyril Ramaphosa, Public Enterprises Minister Lynne Brown and Minister of Finance Malusi Gigaba on 19 January […]

Eskom’s latest work on the IRP for the DoE rejects nuclear

The findings of the latest work on the draft Integrated Resource Plan for Electricity, IRP 2017, by Eskom for the South African Department of Energy (DoE) are proving to be somewhat problematic for Energy Minister David Mahlobo. Click here to download the full Eskom IRP 2017 study for DoE dated November 2017 As a result, […]

Eskom powers ahead with nuclear plans, report shows

Despite terminating its nuclear new build request for information in 2017 following a court decision to halt the process, Eskom is powering ahead with plans in preparation for the tender programme to be rebooted.  Acting Eskom Group CEO Sean Maritz Nuclear vendors from France, Russia and China had prepared lengthy documents to submit to Eskom […]

Eskom’s sales, revenue and debtor management challenges

The low electricity price increase granted by the regulator, NERSA, for the 2016/17 financial year, coupled with declining sales volumes, rising costs and debtor payment challenges, are all working to put Eskom’s revenue, cash flow and bottom line under severe pressure. As a result, the Eskom Group profit of R6,38-bilion for the 6-month period ending […]

Eskom should curtail Kusile construction, decommission older coal-fired power stations to save costs

New research shows that Eskom should decommission its older coal-fired power stations and consider curtailing the Kusile construction programme to save costs. These interventions can be achieved without affecting security of supply. The study, “Eskom’s financial crisis and the viability of coal-fired power in South Africa: Implications for Kusile and the older coal-fired power stations” […]

An alarming picture emerges as Eskom’s liquidity dries up

A final draft report from Eskom to its shareholder for the second quarter of 2017 ending 30 September 2017 paints an alarming picture of funding difficulties and declining liquidity (cash and cash equivalents plus investments in securities), primarily driven by perceptions of poor governance. The report, which has been viewed by EE Publishers and Fin24, provides […]

Eskom executive appointed President of GO15 steering board

Thava Govender, Eskom’s group executive for transmission and acting group executive for risk and sustainability has been appointed as the president of the GO15 steering board for 2017/2018. Speaking at the GO15 annual meeting in Belgium, Govender said that as the new President, he has a personal stake – both emotionally and professionally, in the […]