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You are here: Home / Archives for Eskom

Eskom

11 December 2024

Two sentenced for crimes at Duvha Power Station

Location: News

Two sentenced for crimes at Duvha Power Station

Two people have been sentenced to five and 15 years imprisonment, respectively, for crimes targeting critical infrastructure at Duvha Power Station in Mpumalanga.

The two were sentenced in relation to separate incidents at the power station.

In a statement, Eskom said the two sentences “underscore the severe consequences of actions that threaten the nation’s energy supply”.

“On 8 October 2024, the Middelburg Magistrate’s Court sentenced Tseliso Ramosebetsi to 15 years in prison. Ramosebetsi was caught cutting and removing copper cables from the coal conveyor belt, a vital component of Duvha Power Station operations. Ramosebetsi and his accomplice, Mpho Johannes Machekela, were apprehended on 26 March 2024 after being detected through drone surveillance. 

“While Ramosebetsi has been brought to justice, Machekela absconded from trial, and a warrant for his arrest has been issued.

“In a separate case, the Witbank Magistrate’s Court sentenced Frederick Jacobs Van Wyk to five years in prison on 23 October 2024 for the theft of aluminium cables near the Horticulture site outside Duvha Power Station,” the statement read.

Eskom said the two sentences should serve as a deterrent to other would-be criminals.

“Eskom commends the South African Police Service for their dedication to securing these convictions, and thanks its security teams for their vigilance and collaboration in protecting the nation’s assets.

“Tampering with or damaging critical infrastructure is a criminal offence under the Criminal Matters Amendment Act, with penalties of up to 30 years’ imprisonment. Such activities disrupt essential services, pose serious safety risks, and undermine the sustainability of the electricity network, impacting communities and the economy.

“Eskom is committed to safeguarding the security and integrity of its critical infrastructure. The ongoing collaboration between Eskom’s internal security investigations team and law enforcement agencies, coordinated by the National Energy Crisis Committee’s Safety and Security Priority Committee, is yielding positive results in our efforts to combat crime and corruption,” Eskom said. – SAnews.gov.za

NeoB
Wed, 12/11/2024 - 10:16

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Read moreTwo sentenced for crimes at Duvha Power Station
10 December 2024

Two Sentenced for Crimes Targeting Critical Infrastructure at Duvha Power Station

Location: Business

Tuesday, 10 December 2024: Eskom is pleased to announce the sentencing of two individuals involved in separate criminal activities targeting critical infrastructure at Duvha Power Station in Mpumalanga. These sentences, handed down in October 2024, underscore the severe consequences of actions that threaten the nation’s energy supply. On 8 October 2024, the Middelburg Magistrate’s Court...

Read moreTwo Sentenced for Crimes Targeting Critical Infrastructure at Duvha Power Station
9 December 2024

South Africa’s progress in 2024 sets the stage for hope in the New Year

Location: News

South Africa’s progress in 2024 sets the stage for hope in the New Year

As the year draws to a close, President Cyril Ramaphosa has reflected on South Africa’s achievements and challenges, expressing optimism for the year ahead in his weekly newsletter.

This year marked three decades since the advent of democracy, with the country commemorating its progress in building a constitutional order rooted in freedom, equality and human rights. 

Among the highlights was South Africa’s seventh successful General Election, with 70 political parties contesting. The Electoral Commission was lauded for its efficient management of the polls, reflecting a maturing democracy.

“Our democracy has evolved and matured. We have a Government of National Unity comprising 10 political parties from across the political spectrum. They have agreed on three strategic priorities for this administration. The first strategic priority is to grow our economy and create jobs.

“The structural reforms initiated under the sixth administration are continuing to create conditions for our economy to grow and to create jobs,” the President said. 

Economic growth and energy stability

Efforts to grow the economy and create jobs have borne fruit, with over 250 days of uninterrupted power supply this year. This achievement was credited to improved maintenance by Eskom, increased renewable energy capacity, and widespread adoption of solar solutions. 

“The work of the National Energy Crisis Committee continues. It is working to get more power onto the grid, expand our electricity infrastructure, diversify the market for the benefit of consumers, and lay the groundwork for an energy-secure future,” the President said.

President Ramaphosa said the recovery of commuter and freight rail services also marked a turning point. Passenger rail saw a surge in usage, with 31 of 40 corridors operational and passenger numbers climbing to 40 million from 15 million in the previous year.

Ports in Durban and Cape Town also experienced operational improvements, further boosting economic activity.

“We are making progress in the recovery of freight rail and dealing with longstanding operational challenges in our ports. We are seeing improvements at the container terminals in Durban and Cape Town, as well as with infrastructure upgrades,” the President said. 

Tackling poverty and the cost of living

Turning to poverty and the cost of living, the President noted a significant drop in consumer inflation, bringing down prices of essential goods, including food and fuel.

While unemployment levels remain extremely high, the President said more South Africans are finding jobs.

Government continued to sustain a substantial social wage, dedicating 60% of the national budget to social grants, subsidized housing, free basic services, and no-fee schools.

“These are the measures that reduce poverty and directly improve people’s lives. In addition to the provision of grants to vulnerable groups and unemployed people, this social wage includes subsidised housing, free basic services, no-fee schools and school nutrition. Government has been able to sustain these measures, even as public finances are under severe pressure,” President Ramaphosa said. 

Strengthening State capacity

The President said the administration has worked to enhance government’s ability to deliver basic services, despite the challenges of poor governance and financial constraints in many municipalities.

“The third strategic priority of this administration is to strengthen the capacity of the State to deliver on its mandate. Our efforts to improve the capacity and capability of the state to deliver on basic services continue,” the President said. 

The President cited disruptions in the supply of electricity and clean water as a major problem in many municipalities. He added that many local councils are plagued by poor governance, limited capacity and severe financial constraints which affect service delivery. 

“These are the challenges we are grappling with. We have identified local government as a major focus in this administration. Through initiatives like the Presidential eThekwini Working Group, we are bringing all stakeholders together to solve local problems,” the President said. 

Challenges and Future Plans

While progress has been made, the President acknowledged persistent challenges.

Unemployment remains high, crime and violence are widespread, and service delivery disruptions are a major concern. However, he emphasised the importance of collaboration among government, business, labour, and civil society to address these issues.

“The progress we have made this past year and during the course of the previous administration shows that we can overcome the difficulties our country faces.

“As government, business, labour and civil society, we are able to achieve a great deal when work in unison to overcome our common challenges,” the President said. 

G20 Summit in 2025

Looking ahead, South Africa will host the G20 Summit in 2025, further positioning itself as a key player in addressing global challenges. 

The administration also plans to launch a National Dialogue to unite citizens in crafting a shared vision for the country.

“In the new year, we will embark on a National Dialogue that will draw together all South Africans in crafting a common vision for the country,” the President said. 

Concluding his message, the President expressed hope for 2025, vowing to build on the momentum of 2024. 

“Overcoming poverty and underdevelopment, creating more jobs, and addressing societal ills like gender-based violence, requires that we must all play our part, where we can.

"On many fronts, this year has been better than the last. We will build on these achievements in 2025. 

"Wherever you may be this festive season, I wish you well,” the President said. – SAnews.gov.za

DikelediM
Mon, 12/09/2024 - 11:24

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Read moreSouth Africa’s progress in 2024 sets the stage for hope in the New Year
8 December 2024

Over 250 days without load shedding

Location: News

Over 250 days without load shedding

Eskom has now reached more than 250 days without implementing load shedding – resulting in year-on-year diesel cost savings of nearly R17 billion.

“The investment in the Generation Recovery Plan continues to yield consistent results, with load shedding suspended for 254 consecutive days since 26 March 2024. 

“This achievement reflects the ongoing success of comprehensive structural improvements within the coal-fired fleet, reinforcing Eskom’s commitment to providing a reliable energy supply, enabling economic growth, and promoting long-term sustainability,” Eskom said.

The power utility said as industry begins to shutdown for the December holidays, it will be gradually increasing its maintenance activities to “further improve the reliability of its generation fleet”.

“Over the past week, the average total unplanned outages have been at 11 038MW, a significant improvement from the 14 475MW recorded during the same period last year, representing a reduction of 3 437MW. [Friday’s] unplanned outages [were] at 11 834MW, which is 1 166MW lower than the summer 2024 base case, indicating consistently improved operational efficiency week after week.

“Eskom’s EAF [Energy Availability Factor] was at an average of 59.4% over the past week and 62.8% year-to-date, with top-performing stations — including Majuba, Medupi, and peaking stations — achieving an average EAF of 70% and above. Four other power stations recorded EAFs above 60%,” Eskom said.

Furthermore, the power utility said it expects an additional 2 600MW to return online by Monday (tomorrow) evening.

“In August, Eskom shared its Summer Outlook for the period from 1 September 2024 to 31 March 2025, predicting a likely scenario of a loadshedding-free summer due to structural generation improvements. This outlook remains unchanged,” Eskom said. – SAnews.gov.za

NeoB
Sun, 12/08/2024 - 12:01

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Read moreOver 250 days without load shedding
6 December 2024

NPA reaches resolution with McKinsey South Africa

Location: News

NPA reaches resolution with McKinsey South Africa

The National Prosecuting Authority (NPA) has secured a resolution with infamous multinational company, McKinsey South Africa, to pay back some R1.1 billion to state coffers for its role in State Capture.

NPA Asset Forfeiture Unit Head, Deputy National Director of Public Prosecutions, Ouma Rabaji-Rasethaba, has called the resolution a “significant step that takes South Africa forward in fighting crime”.

“The NPA remains committed not only to prosecuting criminals but also to contributing to the economic recovery of the country through restitution. Corporate alternative dispute resolutions address both of these mandates of the NPA in a cost-effective impactful way.

“Such resolutions are a globally recognised and proven crime fighting method. This strategy is to be embraced as South Africa recovers from the effects of state capture,” Rabaji-Rasethaba said.

According to the prosecutorial body, McKinsey will also assist the NPA Investigating Directorate Against Corruption in its “criminal investigations by continuing to hand over information and material in its possession”.

“The Resolution is the product of international co-operation between the NPA and the United States Department of Justice [US DOJ] and was co-ordinated with US criminal justice processes that resulted in a settlement agreement confirmed today by a US Federal Court.

“In terms of the Resolution, McKinsey admits, accepts and acknowledges responsibility under South African law for the criminal actions and conduct of Vikas Sagar, who was a former partner of McKinsey, during the relevant period. As a result of Sagar’s corrupt actions, McKinsey was awarded contracts with Transnet and Eskom amounting to nearly R2 billion.

“McKinsey has already made financial restitution to these entities by returning all fees paid to it, with interest. This Resolution has already greatly assisted in moving investigations concerning implicated individuals forward for decisions to be made regarding any prosecutions,” the NPA said.

Furthermore, the company is also obliged to “continue investing in its extensive local and international corporate compliance anti-corruption programme to prevent and detect future corrupt practices”.

“A dedicated senior compliance official is required who reports to the Board on compliance matters and who holds significant independence. McKinsey previously fulfilled this obligation by hiring a Global Chief Ethics and Compliance Officer in 2021. There are also anti-corruption requirements when contracting with third parties such as supplier development partners.

“Significant due diligence must be carried out before the conclusion of such deals. Compliance is to be monitored and audited on an ongoing basis.

Importantly, the NPA added, McKinsey is bound by conditions in the resolution or risk the re-opening of the investigation against it.

“To ensure fulfilment of these commitments, the Resolution permits the NPA to reopen its investigation concerning McKinsey should it fail to implement that programme, fail to provide the necessary co-operation with the ongoing South African investigations into the relevant conduct referred to in the Resolution, or in the event that it provides materially false, incomplete or misleading information to the NPA,” the prosecutorial body explained. – SAnews.gov.za

 

NeoB
Fri, 12/06/2024 - 11:40

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Read moreNPA reaches resolution with McKinsey South Africa
5 December 2024

Cabinet notes decline in GDP by 0.3% in third quarter of 2024

Location: News

Cabinet notes decline in GDP by 0.3% in third quarter of 2024

Despite the third quarter gross domestic product (GDP) decline, Cabinet has welcomed the positive economic outlook by the International Monetary Fund (IMF) and rating agency Standard & Poor’s (S&P), as the impact of the implemented Operation Vulindlela coordinated reforms have started to bear fruit.

This is according to Minister in the Presidency Khumbudzo Ntshavheni, who briefed the media on the outcomes of the Cabinet meeting held on Wednesday, 4 December.

S&P revised South Africa’s outlook to “positive” from “stable” in November this year, citing plans for accelerated economic reforms by the new government of national unity and a pickup in private investments.

Ntshavheni said Cabinet noted the decline in GDP by 0.3% in the third quarter of 2024, with the largest decline of 28.8% recorded in the agriculture, forestry and fishing, which may indicate the impact of drought. 

Statistics South Africa (Stats SA) has indicated that the severe drought in 2024 caused a 0.3% decline in the country’s GDP in the third quarter. 

Meanwhile, S&P also upgraded Eskom’s long-term global-scale foreign and local currency ratings from stable to positive, which indicates the progress made by government in strengthening Eskom’s financial and operational foundation through the work of the National Energy Crisis Committee (NECOM), the Eskom Board and Executive team.

“Cabinet further welcomed the decision by the South African Reserve Bank to cut the repo rate by another 25 basis points from 8% to 7.75%," said Ntshavheni. 

The Executive believes that the lower interest rate will continue to ease the burden on highly indebted consumers and mitigate the high cost of living, while also encouraging businesses to expand their operations to further stimulate economic activity. 

Investment 

Cabinet has welcomed the announcement by Saudi Arabia to invest R9.5 billion to build a platinum smelter and base metals refinery in the Waterberg in Limpopo. 

“This new investment is a strong vote of confidence in our nation and builds on the first phase of our investment mobilisation drive under the sixth administration that saw our nation surpass its investment target by 26% to reach a total of R1.51 trillion in investment pledges,” said Ntshavheni.

The Minister said South Africa is now targeting R2 trillion in new investments over another five years between 2023 and 2028. 

SAA

In addition, the Executive has commended South African Airways’ (SAA) strong performance, highlighting the airline’s significant progress towards financial sustainability. 

“For the first time since 2012, the SAA has recorded a net profit of R252 million for the 2022/23 financial year, and group revenue increased from R2 billion to R5.7 billion.

“Remarkably, SAA achieved this milestone while operating with only six to eight aircraft across nine destinations at the beginning of the 2022/23 financial year,” Ntshavheni said, adding that the airline has since doubled its fleet, launched intercontinental routes, and increased its network to 16 destinations. – SAnews.gov.za
 

Gabisile
Thu, 12/05/2024 - 15:44

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Read moreCabinet notes decline in GDP by 0.3% in third quarter of 2024
4 December 2024

Joint Operation Exposes Illegal Electricity Operation in Fochville Costing Eskom Millions of Rands

Location: Business

Wednesday, 04 December 2024: A collaborative operation involving Eskom Gauteng Distribution Security, the South African Police Service (SAPS), City Power and Eskom-contracted security personnel uncovered a large-scale illegal electricity operation during a raid at three houses located on a farm, which was heavily guarded, in Leeupoort near Fochville in Gauteng. Intelligence investigations uncovered that stolen...

Read moreJoint Operation Exposes Illegal Electricity Operation in Fochville Costing Eskom Millions of Rands
4 December 2024

Young South African Scientists Impress Judges at Türkiye Science Fair

Location: Business

Wednesday, 04 December 2024: Two South African learners from the Eskom Expo for Young Scientist International Science Fair were awarded medals after successfully showcasing their research projects at this year’s İzmir International Innovation Science Energy Engineering Fair (IISEEF) in Türkiye. Thiedu Du Preez, 17, from Vredenburg High School on the West Coast, was awarded a...

Read moreYoung South African Scientists Impress Judges at Türkiye Science Fair
3 December 2024

Eskom Publishes Disconnection Notice for Local Municipality Over R328 Million Unpaid Debt

Location: Business

Thursday, 28 November 2024: Eskom today published a notice of the possible disconnection of bulk electricity supply to Tokologo Local Municipality (the Municipality) in the Free State in accordance with the provision of the Promotion of Administrative Justice Act (PAJA). Should Eskom proceed with the disconnection, bulk electricity supply to Boshof, Seretse, Dealesville and Hertzogville...

Read moreEskom Publishes Disconnection Notice for Local Municipality Over R328 Million Unpaid Debt
3 December 2024

Eskom Appoints Group Executive for Strategic Delivery

Location: Business

Tuesday, 03 December 2024: Eskom Group Chief Executive (GCE) Dan Marokane has announced a further new executive appointment to align its executive execution capability and capacity to prepare for a competitive marketplace. Mr Alfred Seema joins as Eskom Group Executive for Strategic Delivery from Sasol, where he most recently held the role of Vice President...

Read moreEskom Appoints Group Executive for Strategic Delivery
3 December 2024

Tshwane signs payment agreement with Eskom to settle R6.6bn debt

Location: News

Tshwane signs payment agreement with Eskom to settle R6.6bn debt

The City of Tshwane has signed a payment arrangement plan to settle its R6.6 billion debt owed to the power utility.

This comes after the utility took the City to court for bulk electricity supply arrear debt and the matter was set down for hearing on 26 and 27 November 2024. 

However, Eskom said the parties have since met and agreed on a five-year payment arrangement plan, which was formalised as a court order on 26 November 2024. 

“In terms of the payment arrangement plan, the City of Tshwane has committed to make the initial payment of R400 million in December 2024, with the last payment scheduled for March 2029,” Eskom explained in a statement on Monday. 

The payment arrangement plan is subject to two conditions: 

  • All current accounts must be paid in full on or before their due dates. 
  • If the City defaults on the payment arrangement and the current accounts, the payment arrangement shall be terminated, and the full amount owing will become due and payable to Eskom immediately.

“We are pleased to have worked collaboratively with the City of Tshwane to reach this outcome.

“This agreement plays a part in maintaining the sustainability of Eskom to drive the economic growth of South Africa and reduce our burden on the taxpayer,” Eskom Distribution Group Executive, Monde Bala, said. 

Tshwane Mayor, Dr Nasiphi Moya, has described this arrangement as a “landmark agreement”. 

“This agreement is a significant milestone in our journey to financial recovery and stability,” Moya said.

According to the Mayor, the City has already paid R425 million in arrears for October 2024. 

“A critical condition of this agreement is the timely payment of current accounts within 30 days of billing.” 

Moya believes that this settlement signals a turning point, ending years of costly litigation and redirecting focus toward improving service delivery and enhancing revenue collection systems. 

“My administration is fully committed to honouring this arrangement in full. We will adopt stronger financial governance practices to ensure this never happens again, safeguarding the City’s resources and financial health,” the Mayor said. – SAnews.gov.za

Gabisile
Tue, 12/03/2024 - 10:20

164 views
Read moreTshwane signs payment agreement with Eskom to settle R6.6bn debt
3 December 2024

Eskom Alerts the Public About Electricity Sales Scams on Social Media

Location: Business

Tuesday, 03 December 2024: Eskom would like to alert the public about a rise in illegal electricity sales scams on social media. These scams deceive customers by offering fake prepaid vouchers at discounted rates online. Once payment is made to the fraudulent website, often through electronic funds transfer (EFT) services at major supermarkets, the scammers...

Read moreEskom Alerts the Public About Electricity Sales Scams on Social Media
3 December 2024

Eskom suspends power interruption notice against City of Joburg, City Power

Location: News

Eskom suspends power interruption notice against City of Joburg, City Power

Eskom has suspended its Promotion of Administrative Justice Act (PAJA) notice of potential power interruption against the City of Joburg (CoJ) and City Power issued last month. 

According to the State-owned power utility, this is to allow the Minister of Electricity and Energy’s process undertaken by an independent expert regarding alleged historical overbilling to be concluded.

Following the Minister’s engagement with the Johannesburg Executive Mayor Dada Morero, executives from the CoJ, City Power and Eskom on 11 November 2024, an agreement was reached that an independent expert would be appointed to undertake a process to look into the disputed alleged overbilling of approximately R3.4 billion by 25 November 2024.

“This deadline was subsequently extended to 6 December 2024 for the report to be delivered to the Minister. Eskom continues to fully support the process,” Eskom said on Monday.

The utility said the CoJ and City Power were expected to pay R1.4 billion for the September 2024 invoice, which was withheld for Eskom to suspend the PAJA notice. 

The City and City Power have since paid Eskom R1.3 billion, which is short of the agreed R1.4 billion. 

“The October 2024 invoice of R1.3 billion that was due to be paid by Friday 29 November 2024 remains unpaid at this time. CoJ and City Power have committed to make a further payment by Friday, 6 December 2024, towards the debt.” 

Following the submission of the independent report, Eskom said it will wait for a report from the Minister on the findings from the independent expert.

“Eskom will update stakeholders and the media, as and when there are new developments.” – SAnews.gov.za

Gabisile
Tue, 12/03/2024 - 11:19

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Read moreEskom suspends power interruption notice against City of Joburg, City Power
2 December 2024

Eskom Suspends Potential Power Interruption Notice Against City of Johannesburg and City Power

Location: Business

Monday, 2 December 2024: Eskom has suspended its Promotion of Administrative Justice Act (PAJA) notice of potential power interruption against the City of Johannesburg (CoJ) and City Power (CP) issued on Thursday 7 November 2024. This is to allow the Minister of Electricity and Energy’s (MoEE) process undertaken by an independent expert regarding alleged historical...

Read moreEskom Suspends Potential Power Interruption Notice Against City of Johannesburg and City Power
2 December 2024

The City of Tshwane Signs a Payment Arrangement Plan to Settle Its R6.6 Billion Debt

Location: Business

Monday, 2 December 2024: Eskom is pleased to announce that the City of Tshwane has signed a payment arrangement plan to settle its R6, 661 123 246. (Six billion, six-hundred and sixty-one million, one-hundred and twenty-three thousand two hundred and forty-six) debt owed to the power utility. Eskom had taken Tshwane to court for bulk...

Read moreThe City of Tshwane Signs a Payment Arrangement Plan to Settle Its R6.6 Billion Debt
2 December 2024

NERSA hosts public hearings in Gauteng

Location: News

NERSA hosts public hearings in Gauteng

The National Energy Regulator of South Africa (NERSA) will conduct public hearings on Eskom’s Sixth Multi-Year Price Determination (MYPD 6) in Gauteng, this week.

The public hearings on the MYPD6 revenue application for the 2025/26, 2026/27 and 2027/28 financial years is taking place on 3 - 4 December 2024 from 09:00 – 17:00.

The first day of the public hearings in Gauteng will take place on Tuesday, 3 December 2024, in Soweto, Uncle Tom’s Community Centre, Kumalo Street, Orlando West, Johannesburg, 1804.

Day two of the public hearings will be on Wednesday, 4 December 2024, at the Gallagher Convention Cetre, 19 Richards Drive, Halfway House, Midrand, 1685.

Eskom’s revenue request amounts to R446 billion for 2025/26, R495 billion for 2026/27 and R537 billion for 2027/28, respectively. 

This translates to:

  • The proposed average price increases for Eskom direct customers are 36.15% (1 April 2025 to 31 March 2026); 
  • 11.81% (1 April 2026 to 31 March 2027), and 
  • 9.10% (1 April 2027 to 31 March 2028).

“This application is processed according to the MYPD 4 Methodology, with primary energy costs, operating expenses, independent power producers, international purchases and depreciation as the main drivers.

“NERSA is committed to ensuring that all regulatory processes, including public participation, are conducted with the utmost transparency, fairness and inclusivity,” NERSA said. - SAnews.gov.za

nosihle
Mon, 12/02/2024 - 10:52

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Read moreNERSA hosts public hearings in Gauteng
29 November 2024

Diesel Savings Continue to Climb, Amounting to R17.37 Billion Year-On-Year

Location: Business

Friday, 29 November 2024: The investment in the generation recovery plan continues to deliver results with loadshedding remaining suspended for over eight months (247 consecutive days) since 26 March 2024, due to ongoing structural improvements in the coal-fired fleet. These improvements are contributing to economic growth and energy security. The recovery plan has resulted in...

Read moreDiesel Savings Continue to Climb, Amounting to R17.37 Billion Year-On-Year
28 November 2024

Eskom issues disconnection notice for services to Free State municipality

Location: News

Eskom issues disconnection notice for services to Free State municipality

Eskom has announced the publication of a disconnection notice for bulk electricity supply to Tokologo Local Municipality in the Free State due to an unpaid debt of R300 million.

The state-owned power utility said the action is per the provisions of the Promotion of Administrative Justice Act (PAJA).

“Should Eskom proceed with the disconnection, bulk electricity supply to Boshof, Seretse, Dealesville, and Hertzogville will be interrupted daily from 31 January 2025 for a set number of hours per day,” the Eskom statement read. 

Eskom said the municipality currently owes them R328 711 887 for the bulk supply of electricity, excluding the current account of a further R3 682 099, which became due and payable on 20 November 2024.

According to the utility, the last payment Eskom received from the municipality was R150 000 on 5 October 2021.

“The municipality charges, collects, and receives money from its customers for the supply of electricity but fails to hand over the portion due to Eskom. 

“This is at Eskom’s detriment and it is not sustainable. The municipality is responsible for discharging a constitutional obligation but decides to withhold payments to Eskom. The decision by Eskom to proceed with the process to disconnect electricity supply is a measure of last resort to prevent the debt from spiralling out of control.”

Eskom said the municipality’s breach of its payment obligation to Eskom undermines and places in jeopardy Eskom’s ability to continue the national supply of electricity on a financially sustainable basis. 

“Eskom must exercise its right to disconnect the supply of electricity to the municipality to protect the national interest in the sustainable supply of electricity to support economic growth.” 

The entity has since invited all affected parties to submit written representations, comments, or submissions indicating why Eskom should or should not proceed to reduce, disconnect, or terminate the bulk electricity supply points. 

The closing date for submissions will be close of business on 6 January 2025 and Eskom will communicate the final decision on or before 16 January 2025. 

“Eskom appreciates the hardships the community and the economy will suffer should it exercise its statutory powers to disconnect the municipality. There are no other meaningful options available for Eskom to stop the debt from growing and to collect for current consumption on bulk supply.” 

Eskom outlined interventions by stakeholders to empower the municipality to pay its Eskom debt since 2021. 

“Despite all the avenues that Eskom explored and efforts to accommodate the municipality, the matter has reached a point where Eskom can simply no longer afford to accommodate the municipality without further financial strain and harming its own business. 

“In terms of the Constitution and the Intergovernmental Relations Framework, the municipality is supposed to cooperate and assist Eskom with fulfilling its mandate of ensuring that citizens have access to affordable electricity. 

“The municipality has breached these obligations by not paying Eskom for the bulk electricity it supplies, making it impossible for Eskom to fulfill its mandate.” – SAnews.gov.za

Gabisile
Thu, 11/28/2024 - 12:55

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Read moreEskom issues disconnection notice for services to Free State municipality
27 November 2024

Eskom hails meter upgrade project as a success

Location: News

Eskom hails meter upgrade project as a success

With Eskom hailing the completion of its pre-paid meter upgrade project as a success, the power utility has requested the approximately 1.7 million “zero buyers” to upgrade their meters before the deadline.

“The result of this technology changeover has brought Eskom around 400 000 previous zero buyers to become new paying customers and provided us with a wealth of data to bring further zero buyers into legitimately purchasing electricity,” Eskom Group Chief Executive Dan Marokane said on Wednesday during a media briefing in Cape Town.

All prepayment meters have to be upgraded to the Key Revision Number version 2 (KRN 2) as the STS technology for prepayment meters will stop accepting new credit tokens. This is due to the expiry of these vending codes.

This will mean they will stop dispensing electricity after the existing credit is used up, thus making the meter inactive.

“Eskom has successfully completed its pre-paid meter Key Revision Number (KRN) rollover project. Starting off with a customer base of 6.91 million prepaid customers, all customers have been converted to KRN 2. 

“A data cleaning exercise fully updated the incomplete details of 341 000 customers to bring Eskom’s base to 7.25 million. As of 24 November 2024, approximately 5.5 million customers (which includes the around 400 000 zero buyers, who have become paying customers) have successfully rolled over and are transacting on KRN 2.

“Eskom is currently observing a decrease in the zero buyer numbers to around 1.7 million from the previous 12-month rolling average of 2.1 million. We request these customers to do what is right by Friday, 13 December 2024, by visiting their nearest Eskom sites,” the power utility said.

Eskom said all paying customers who had bought electricity before the deadline and have had their meters made KRN 2 compliant and who are experiencing difficulty will be assisted to complete the process and will not be unfairly penalised. 

These customers are advised to use Alfred the chatbot, Eskom Contact Centre: Interactive Voice Response (IVR) and WhatsApp.

“For those zero buyers who bought electricity before the deadline and were unable to load their meters, they must bring their slips/tokens to the nearest Eskom Hub by Friday 13 December 2024 to be assisted. Customers are urged not to wait for the last day of the extension.

“Zero buyers who bought electricity before the deadline but have a meter-related matter such as a lost, bypassed, or tampered meter, must come forward at Eskom centres by Friday 13 December 2024. Their individual situations will be assessed, tamper fines issued if required and meter updates and replacements will then be scheduled,” Eskom said.

Those who have come forward but did not buy or attempt to buy electricity tokens by 24 November 2024 are encouraged to purchase electricity tokens before 13 December 2024.

Their meters will be audited, and tamper fines and meter replacement costs will be assessed and issued accordingly. They can come forward at any time.

“In the past 10 days, we saw zero buyers coming forward in huge numbers wanting to buy electricity and do the right thing. We will continue to treat these users with dignity and respect as we resolve these issues for all of them who did the right thing. 

“We acknowledge also that this was a complex process presenting a challenging set of issues and was at times fraught and we continue to monitor and stabilise the system to ensure a smooth customer experience,” Eskom’s Group Executive for Distribution, Monde Bala, said.

Marokane said the power utility was doing everything that is practically possible to make users of electricity pay for it in the interest of those who already pay for electricity, maintain the sustainability of Eskom to drive the economic growth of South Africa and reduce the burden on the taxpayer. - SAnews.gov.za

 

nosihle
Wed, 11/27/2024 - 12:29

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Read moreEskom hails meter upgrade project as a success
27 November 2024

S&P upgrades Eskom’s credit ratings from stable to positive

Location: News

S&P upgrades Eskom’s credit ratings from stable to positive

S&P Global Ratings Agency (S&P) has upgraded power utility Eskom's long-term global scale foreign and local currency ratings from stable to positive.

S&P affirmed Eskom’s ‘B’ issue rating on the group’s senior unsecured debt from ‘CCC+’ and the ‘BB-’ foreign currency issue rating on the government-guaranteed debt.

Furthermore, Eskom’s South Africa national scale issuer credit rating was upgraded to ‘zaBBB+’ from ‘zaBBB’, with the short-term national scale rating of ‘zaA-2’ reaffirmed.

Eskom's ratings are supported by government bailouts, including a R254 billion financial support package introduced through the Eskom Debt Relief Act, which was signed into law in 2023.

This package ensures Eskom can meet its debt servicing and repayment commitments through 2026, significantly reducing liquidity risks and bolstering its financial stability.

Eskom’s Group Chief Executive, Dan Marokane, said the upgrade clearly indicates the progress made in strengthening Eskom’s financial and operational foundation.

“It sends a positive message to investors and stakeholders, reinforcing trust in our ability to deliver energy security while driving long-term sustainability.

“Our success in improving generation performance and achieving over R16 billion in diesel savings highlights the efficiency gains we are driving. Sustaining this momentum will support Eskom’s path to profitability and reduce our reliance on fiscal support in the future,” Marokane said.

Meanwhile, the power utility said this credit rating upgrade underscored the progress in restoring Eskom’s financial health and operational reliability.

Eskom said it was committed to delivering on its mandate to power South Africa’s economic future while creating value for all stakeholders.

“Eskom will continue to focus on implementing generation recovery, strengthening governance, and tackling crime and corruption while futureproofing the organisation to enable energy security, growth, and long-term sustainability for the benefit of South Africa and sub-Saharan Africa.” – SAnews.gov.za

Gabisile
Wed, 11/27/2024 - 09:30

223 views
Read moreS&P upgrades Eskom’s credit ratings from stable to positive
27 November 2024

Pre-paid Meter Rollover Project Brings in Around 400,000 Zero Buyers

Location: Business

Wednesday 27 November 2024: Eskom has successfully completed its pre-paid meter Key Revision Number (KRN) rollover project. Following the deadline being reached for the pre-paid meters to be updated to KRN 2 at 20:15 on Sunday, 24 November 2024, the key initial findings indicate: Recommended actions to be taken. “In the past ten days, we...

Read morePre-paid Meter Rollover Project Brings in Around 400,000 Zero Buyers
27 November 2024

Eskom’s Credit Ratings Upgraded From Stable to Positive

Location: Business

Wednesday, 27 November 2024: Eskom welcomes the announcement by S&P Global Ratings (“S&P Global”) upgrading Eskom’s ‘B’ long-term global scale foreign and local currency ratings from stable to positive. S&P also affirmed Eskom’s ‘B’ issue rating on the group’s senior unsecured debt and the ‘BB-’ foreign currency issue ratings on the government guaranteed debt. Furthermore, Eskom’s...

Read moreEskom’s Credit Ratings Upgraded From Stable to Positive
25 November 2024

SA Science Stars Gear up to Showcase Research at Mexico Science

Location: Business

Monday, 25 November 2024: Two local young science stars are set to represent South Africa at the ExpoCiencias Nacional 2024 in the city of Villahermosa in Mexico next week. Aman Pati, a Grade 11 learner at Kingfisher High School in Limpopo and Raees Khan, a Grade 11 learner at Vryburg High School in the North...

Read moreSA Science Stars Gear up to Showcase Research at Mexico Science
22 November 2024

Eskom Marks Its Longest Stretch of Uninterrupted Power Supply in Five Years

Location: Business

Friday, 22 November 2024: Loadshedding remains suspended for 240 consecutive days since 26 March 2024, contributing to economic growth and energy security as a result of further structural improvement in the coal-fired fleet. The plan has resulted in year-on-year diesel savings of R16.33 billion, approximately 71.2% less than the R22.94 billion spent during the same...

Read moreEskom Marks Its Longest Stretch of Uninterrupted Power Supply in Five Years
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