Sometimes being put in a corner brings out the best in people, and in this case it seems to have brought out some creative thinking amongst the Eskom executive. Nersa recently granted a the energy utility a 9.4 percent increase from 1 April, upon which Eskom said it would leave a ‘hole in the balance sheet’ and lead to ‘further load shedding’. The increase was around half of what was requested. It seems a three day retreat (at who’s expense?) allowed management to reassess the situation, leading CEO Brian Molefe to retract the previous statement. With measures in place to ensure it’s not a dark, cold winter, hope springs. And let’s not forget that this is an election year. – Stuart Lowman
By Liesl Peyper
Cape Town – Eskom CEO Brian Molefe on Wednesday retracted his previous statement that the lower tariff hike granted by the National Energy Regulator of South Africa (Nersa) would lead to load shedding this year.
Eskom issued a statement shortly after Nersaâs decision to grant it an additional R11.2bn in revenue for 2016/17 â almost half of the amount the power utility had originally requested. In the statement, Eskom warned it could not guarantee that the lights would stay on.

Addressing members of Parliamentâs Oversight Committee on Public Enterprises, Molefe said Nersaâs decision did put a âhole in Eskomâs balance sheetâ.
âWe did indeed warn that the lower tariff hike could result in problems keeping the grid stable,â Molefe said. âHowever, we as management went on a three-day retreat to look at the implications of Nersaâs decision and Iâm happy to report we put measures in place to make sure load shedding doesnât happen.â
One of the main reasons Nersa didnât want to grant Eskomâs application of an additional R22bn in tariff hikes was Eskomâs reliance on diesel-powered open cycle gas turbines – by far the biggest item on the utilityâs expense account.
It's unreasonable of Eskom CEO Mr Molefe to threaten not to use diesel OCGTs in future, when the real problem is lateness of Medupi & Kusile
— Chris Yelland (@chrisyelland) March 1, 2016
âThe decision of Nersa (to grant less than Eskom had applied for) related to our use of diesel in 2013 to avoid load shedding. That means if we do use diesel to avoid load shedding, it will punch a bigger hole in our balance sheet. But weâll find ways to deal with it.â
Democratic Alliance MP Natasha Mazzone said during question time that her party plans to press criminal charges against municipalities which owe Eskom a total of R6bn in outstanding debt.
Molefe said laying criminal charges is not on the cards. âWe believe in a more constructive approach and weâre discussing the matter and putting solutions on the table.
Read also:Â Molefe: Privatisation talk âfoolishâ. Eskom cash positive by 2025.
âAt least at provincial level Eskom is stepping in and weâve started installing pre-paid meters and collecting the money on behalf of municipalities who are prepared to pay pre-paid,â Molefe said.
Certain municipalities are in arrears, he added, because they are not able to adjust the increase in electricity tariffs. âWe are helping them and proposing to act as a sub-contractor to help them with revenue collection.â –Â Fin24
Source:Â http://www.fin24.com/Economy/Eskom/molefe-backtracks-on-load-shedding-risk-20160309