Eskom Latest: Labor Union Disputes Minister’s Claims on Graft

The biggest labor union at Eskom Holdings SOC Ltd. disputed a claim by South African Electricity Minister Kgosientsho Ramokgopa that the utility’s underperformance isn’t related to widespread graft.

(Bloomberg) — The biggest labor union at Eskom Holdings SOC Ltd. disputed a claim by South African Electricity Minister Kgosientsho Ramokgopa that the utility’s underperformance isn’t related to widespread graft.

“We are categorically and emphatically disagreeing with the minister’s version that corruption in Eskom does not play any role” in persistent electricity shortages, the National Union of Mineworkers, said in a statement on Monday. Ramokgopa, who was appointed to his role on March 6, was speaking while visiting the utility’s fleet of coal-fired power plants.

The union alleged that plant breakdowns can be attributed to the use of low-quality parts. that are being purchased at over-inflated prices with the help of some Eskom employees.

Eskom Resumes Power Outages (March 26m 5:52 p.m.)

Eskom resumed power outages Sunday after suspending rotational blackouts for most of the day.

The utility cut 1,000 megawatts from the national grid, a practice known as loadshedding, from 4 p.m until 5 a.m. Monday and then 2,000 megawatts until 4 p.m., before ramping up again and cutting 3,000 megawatts until 5 a.m. Tuesday. 

On Tuesday and Wednesday, 1,000 megawatts will be cut between 5 a.m. and 4 p.m. and 2,000 megawatts between 4 p.m. and 5 a.m. the following day, according to a statement from the utility.

Nuclear Revamp Behind Schedule (March 24, 5:54 p.m.)

The project to extend the lifespan of Africa’s sole nuclear power plant by 20 years is running 45 days behind schedule, News24 reported, citing Ramokgopa.

That means South Africa will spend its entire winter without the Koeberg unit, which has a capacity of 920 megawatts. That’s almost equivalent to one stage of loadshedding, a measure of power rationing used by Eskom.

The later return of the Koeberg unit means that the under-performing coal-fired power plants in the country’s northeastern Mpumalanga province have to significantly improve, Ramokgopa said, according to News24.

Investor Weighs 3GW Gas-Fired Plant (March 24, 1:41 p.m.)

An investor has expressed interest in establishing a 3,000-megawatt gas-fired plant in the Western Cape province, Ramokgopa said. 

The minister said he will meet Alan Winde, the province’s premier, on Saturday to discuss the project that could begin within six to seven months. He spoke to reporters on Friday on the last day of a week-long tour of Eskom’s power stations, according to footage broadcast by eNCA.

Lawmakers Vote Against Probe (March 23, 8:26 p.m.)

South African lawmakers on Thursday voted against setting up a panel to investigate claims of corruption at Eskom.

The electricity supplier is allegedly losing about 1 billion rand ($55 million) a month due to graft and theft, Eskom’s former Chief Executive Officer Andre de Ruyter said during an interview with local broadcaster e.tv last month. The alleged fraud involved people linked to the ruling African National Congress, he said. 

–With assistance from Paul Vecchiatto, Amogelang Mbatha and Rene Vollgraaff.

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