This material belongs to: The Sunday Times.
“We need to get this state capture‚ corruption things‚ out in the open.”
According to Professor Rod Crompton‚ director of the Wits Business School Energy Leadership Centre‚ research has found just more than one in four South Africans (26%) will not source their energy from Eskom by 2030.
Van Staden said this will eat into Eskom’s sales and change who their customers are.
“By the time the Kusile unit is available‚ you may not be able to follow the rapid change in demand required due to renewables in the grid‚” Van Staden said.
“The new capacity [of Eskom] is coming on the market at the exact time when the whole landscape is being changed.”
Nene said Eskom needs “some serious surgery” but the power utility is “too critical and central to our economy to be allowed to fail”.
Deon Joubert‚ who works on economic regulation at Eskom‚ said one of the problems in South Africa is municipalities who buy about 42% of Eskom’s energy and sell it to residents at higher prices.
“You have an artificial mechanism that is stimulating the switching [to other power sources].”
He said Eskom cannot be fixed in isolation and needs good management‚ and government policy and regulation.
“It assumed an efficient and a prudent operator. Something that Eskom has proved not to be.”
Bukula said Eskom must rely on their infrastructure as their core business.
The audience applauded when Bukula said: “The kilowatt hours business is not their business. It has gone past them.”
Nene said it would be a “welcoming development” if government started listening to industry expertise‚ which he believes does not exist within the current administration.