Question NW3277 to the Minister of Public Enterprises
17 November 2017 - NW3277
Gqada, Ms T to ask the Minister of Public Enterprises
(1) With reference to the Minister of Energy’s reply to question 2966 on 12 October 2017, (a) why does Eskom disagree with the creation of a national basket for maintenance that will require a percentage from municipality revenue as stipulated by her department, (b) what is the alternative plan from Eskom in this regard, (c) how does Eskom intend to deal with the maintenance backlog that the national basket for maintenance attempts to address, (d) what is the total cost of the backlog and (e) what percentage of the tariff increase requested by Eskom will be allocated to maintenance; (2)what is the current allocation of revenue that is allocated to Eskom for maintenance?
Reply:
(1)(a)
Eskom disagreed to being part of the national basket for the following reasons:
- Eskom does not require additional funding outside the tariff increases to do maintenance of its Distribution infrastructure
- Eskom has stated its ambition in its corporate plan to reduce its financial loans and government guarantees in the next five years
- Eskom believes that Distribution should be a self-funding business.
(1)(b)
Based on the reasons in (1)(a) Eskom does not require an alternative plan
(1)(c)
From an Eskom perspective, there is no maintenance (repairs and preventative) backlog. Eskom Distribution has a preventative work order compliance rate of 99%.
(1)(d)
Not applicable, as Eskom does not have a backlog.
The maintenance budget (repairs and preventative) for the next 5 years is R25 484m.
(1)(e)
Looking at the make-up of the Eskom’s revenue application, this cannot be specifically broken down as the percentage, due to the application structure being expressed as the c/kwh and driven by the specific cost base
(2)
The 2017/2018 MYPD 3 Determination for the revenue allocation is R205 215m. The allocation for the total maintenance at Eskom level is R14 813m, of which R7 407m is the allocation for Distribution licence maintenance.
Remarks: Reply: Approved / Not Approved
Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP
Director-General Minister of Public Enterprises
Date: Date: