Question NW740 to the Minister of Public Enterprises
04 April 2024 - NW740
Gondwe, Dr M to ask the Minister of Public Enterprises
(a) What are the relevant details of the steps his department will take to ensure the full implementation of the recommendations of the VGBE Consortium report that was commissioned by the National Treasury, which constitutes an independent assessment of the operational situation at Eskom’s fleet of coal-fired power stations and (b) by what date is it envisaged that the recommendations will be fully implemented?
Reply:
According to the information received from Eskom:
(a)
The report covers an assessment period from March to May 2023, coinciding with the inception of the Generation Operational Recovery Plan approved by the Eskom Board. During this time, significant developments occurred, including the appointment of Bheki Nxumalo as the Generation Group Executive in mid-April 2023. The Generation Operational Recovery Plan addressed various operational observations at power stations. These initiatives focus on improving people, plant, and process performance. Regular progress updates, which also cover progress feedback on these aspects, are shared with the public every two weeks by the Minister of Electricity (MoE) and Eskom executives during media briefings to give updates on the implementation of the country’s Energy Action Plan (EAP).
Over the nine months since the report’s assessment period, positive results included fixing design-related issues at Medupi and Kusile Power Stations, which have been addressed through modifications. This has improved maintenance and operations, and significantly improved plant availability. This is evident in the much-improved performance at Medupi, which remains among Eskom’s most reliable power stations following the modifications.
Furthermore, as of January 2024, a total of 3 510MW was recovered through concerted efforts focusing on priority power stations. Each power station has its detailed recovery plan, and these are centrally monitored to ensure successful implementation of the actions. Tracking of VGBe recommendations, alongside recommendations of other similar reports, will be done via the Eskom Board and NECOM processes.
(b)
The new Group Chief Executive, Mr. Dan Marokane is assessing the Generation Operation Recovery Plan, which has been instrumental in addressing the issues contained in the VGBe report. This is with the view of accelerating its execution and ensuring that issues in the VGBe report that have not been already addressed are prioritised.
The cooperation of the private sector in the National Energy Crisis Committee has also assisted Eskom to improve operations and training of operators.
The Department and National Treasury are monitoring implementation of the recommendations of VGB.