Eskom “keep lights on” strategy: Cost R7,5bn extra in diesel alone

Eskom’s spokesman Andrew Etzinger is back under the cosh – this time after Government announced taxpayers will provide the funding shortfalls on its R250bn expansion programme. He explains the background, including the massive cost of Eskom’s fulfilment of the now abandoned “keep the lights on at all cost” strategy. Etzinger says last year the diesel generators used to top up production, cost the utility a staggering R7.5bn more than was budgeted for –delivering electricity at three times what Eskom could sell it at.  Given added maintenance now required after an aged coal-fired fleet was run too hard, the true cost of the politically instigated policy (there was an election, remember) is clearly a lot higher. – AH

Transcript to follow..