Peter Bruce’s column refers (“Eskom’s big day looms to throw ferrochrome furnaces a lifeline”, February 26).
Eskom’s troubles are far from over. Bruce is pruning leaves, while hacking at roots is required.
While it is obvious smelters can’t operate profitably at Eskom’s current rates, cutting rates to smelters means the rest of us carry the burden imposed on Eskom. The fact is that Eskom’s rates are too high due to bloated costs.
These are a combination of inflated coal prices — partly as a result of:
- Paying inflated transport costs due to coal being trucked to power stations;
- Overpriced coal due to BEE;
- Problems caused by inferior coal being sent to power stations;
- Inefficient management; and
- Gross overstaffing.
The energy availability factor (EAF), which was in the high 80s in the early 1990s, is now at mid-60%. This means Eskom is selling less electricity than it should and is still burning diesel to keep the lights on. Income down, costs up.
The government is lauded for this? And we wonder why manufacturing is down? It’s time for the government to get real, which is what we’ve been asking for for years.
Where is the DA in the government of national unity in all of this? We understand that it doesn’t own this portfolio, but surely it has influence? The time for excuses is long past. And where is Operation Vulindlela?
It’s the same as in any business: minimise costs, maximise income and improve efficiencies. Eskom is nowhere near that.
Eric Carter
Blairgowrie
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