Bleak outlook for SA’s energy supply
Blom, who has has led numerous investigations and projects in both the mining and energy spheres, has called for South Africans to take immediate action by trying to go off the grid as he predicts in five years electricity will become unaffordable and supply increasingly unstable.
Ted Blom, a senior energy strategist, has lambasted the state of operations at Eskom and painted a bleak picture of the power utilities’ ability to provide power to the nation.
He was speaking during a business breakfast held in Kempton Park recently.
Blom said nothing has been done to solve Eskom’s woes, as he calls for Eskom to return as a NPO or embrace free market electricity (opening up the grid). He also proposed returning to paying 40 cents per kWh.
“The new board that has been appointed do not have the experience, and they were appointed by the president instead of the stakeholders, so this gives me no hope of Eskom turning around.
“Corruption, according to me, to this day is still going on, from top to bottom. The excess work force also won’t be trimmed because it is an extra 33 000 votes for the ruling government.
“So far we have seen no real turnaround plan, exorbitant overspending continues even on consultants, and the proposed unbundling will only cost Eskom more money.”
He said the cash injection of the government will have no impact.
“Consider that Eskom runs at a loss of around R20-billion to R25-b a year and will continue to do so. Therefore government’s bail-out of R23-b a year will only cover that hole, but there will be no money for any upgrades.
“In order for Eskom to fix the mess, they can do a couple of things immediately. This involves stopping coal corruption and clean up the staff numbers. This could save Eskom billions a year, and therefore they can pay off its debt in five years.
“So Eskom’s problem is not finances, for there is enough money, but simply bad management, and the wasting of money.
“Over the years I have learned that big momentum topples slowly. So we need to all take action, speak out, and we really need somebody who is recognised who can fix the power utility.
“We need a strong political will to come up with solutions and quickly, because renewable energy will also not be able to drive the country.”
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