Questions and Replies

Reply:

1. According to regulatory requirements, Eskom Transmission publishes a Transmission Development Plan (TDP) every year, looking 10 years ahead. It identifies infrastructure required to (i) keep abreast of load growth, (ii) comply with reliability/redundancy requirements, (iii) meet new generation integration requirements, and (iv) replace assets that are at end of life.

In the TDP2022, Eskom identified 1 009 projects requiring development and execution. This comprises 207 expansion category projects and 802 refurbishment projects over this period. The identified scope in TDP2022 broadly involves building 14,218 km of powerlines and 122,669 MVA of transformation.

This infrastructure will be built in all provinces around the country, with the bulk being in provinces such as the Northern Cape, that have the greatest potential for renewable energy power plants

2. It is estimated that more than R390 billion will be required over the next decade to meet the demand for grid capacity, largely due to the increase in generation capacity through renewable energy projects following the various Bid Windows. Eskom’s current financial position places significant limitations on its ability to attract sufficient capital towards expanding the transmission grid, with the delivery of transmission infrastructure taking, on average, between 7 to 10 years. It is estimated this delivery rate needs to be scaled-up by eight times to connect the energy generation required for energy security by 2030.

It is anticipated that the transmission grid build rate needs to increase from 300km to 2300km per year with a greater rate of investment and delivery required through to 2050 (Centre for Sustainability Transitions, 2023).

The Ministry in the Presidency for Electricity co-hosted a Transmission Financing Seminar with the Johannesburg Stock Exchange and is currently finalising a cabinet submission on transmission financing pathways aimed at fast-tracking transmission infrastructure investments to support the anticipated growth in generation capacity and secure long-term energy security.

Reply:

(1)(a) The projected cost for the temporary stacks is estimated at R700 million excluding the operating and maintenance costs.

b) The construction of the temporary stacks for Units 1, 2 and 3 means that the flue gas from these units will not go through the flue gas desulphurisation plants, which reduces Sulphur dioxide levels. The Sulphur dioxide emissions from the temporary stack will thus be higher than would have been the usual case for these units.

The temporary stacks are built after the fabric filter plants and main boilers. As such, the particulate matter and nitrogen oxide levels of the units with the temporary stacks are no different from what they would have been in normal operations.

(2) To operate the temporary stacks with the higher than usual Sulphur dioxide levels, Eskom applied to the Department of Forestry, Fisheries and Environment (DFFE) for a postponement from the Minimum Emissions Standards (MES) published in terms of the National Environmental Management Air Quality Act (NEMAQA). Eskom received a postponement decision from the DFFE

on 5 June 2023. The Nkangala District Municipality issued a revised Atmospheric Emission Licence (AEL) reflecting the postponement on 13 June 2023. The applicable AEL limits for the temporary stacks are thus: particulate matter – 50 mg/Nm3, nitrogen oxide – 750 mg/Nm3 and Sulphur dioxide – 3500 mg/Nm3 (all measured at a 24-hour daily average)

Four parties appealed the MES decision, and three appealed the AEL decision. The Minister ruled on the MES appeals on 26 September 2023, allowing Eskom to proceed subject to three revised conditions. The District Municipality ruled on the AEL appeals on 28 September 2023, accepting the Minister's decision and allowing the project to proceed.

A key consideration in the process was that Eskom must ensure that the operation of the temporary stacks did not result in any health impacts on surrounding communities. The authorities approved Eskom’s plan to monitor and mitigate air quality impacts from Kusile on 18 September 2023. Eskom is implementing the approved plan.

(3) (a) There is no design defect associated with the existing West Chimney failure. The duct failure occurred due to overloading of the chimney flues and inlet duct. The repair is to restore the chimney to its original condition or as close as possible.

b) The projected cost for repairing the West Chimney will only be known once the stabilisation of the flues has been achieved.

Reply:

The supply of South Africa’s energy demand is broadly determined by the energy mix as set out in The Integrated Resource Plan (IRP) 2019. Based on the 2019 IRP, Coal constitutes 43% of installed capacity followed by Wind (22.53) Solar PV (10.5) CSP (0,76) Nuclear (2,36) and Gas and Diesel (8.1) Hydro (5.84).

Whilst the IRP is currently being reviewed, Coal, Nuclear and Gas is expected to continue to be significant contributors to SA’s base load demand in the foreseeable future, with investments in cleaner technologies to mitigate negative environmental impacts, coupled with and battery storage to neutralise and solar/wind hybrid solutions to stabilise the intermittency challenges of renewables.

 

Reply:

1. Eskom removes sulphur dioxide (SO2), which is a by-product of fossil fuel combustion, from the flue gases. This SO2 is removed by means of a wet flue gas desulphurisation system. The flue gas flows through a spray of calcium carbonate (limestone) slurry and forms an end product of calcium sulphate (gypsum).

2. (2)(a) Therefore, no sulphur in its pure, corrosive form is extracted from the absorber, and no sulphur is being sold. The gypsum is currently disposed of on site in a designated area on the power station premises as per licence. The future plan is to sell the gypsum as it can be used in the industry.

(2)(b) No corrosive chemical is being stored and no revenue is being generated at this stage from gypsum.

 

Reply:

(a)Eskom is contracted for 1 150 MW until 31 March 2030.

(b)The extent of infrastructure investment/financing undertaken by Eskom to build/sustain Apollo high-voltage direct-current (HVDC) is provided in Table 1 below for a period of 13 years. Ten of the listed projects have been completed (over R241 million), and eight of the projects are in the execution phase (over R951 million), with the remainder in the development phase (R321 million). The infrastructure includes HVDC key components such as transmission lines, converter transformers, and shunt capacitors, which amounts to a total of R1.5 billion. Obtaining information prior to the year 2010 will require more time, as this information has been archived.

Table 1: Details of infrastructure investment (from 2010)

PROJECT NAME	PLANT TYPE	INITIATIVE PHASE	TOTAL (rand)
Apollo Shunt Capacitor Bank Refurbishment	CAP BANKS	COMPLETED	18 693 718
Apollo CS Breaker 11 kV Replacement	BREAKERS	EXECUTION	31 116 104
Apollo CS Pietersburg Security Fence and Road	SECURITY	COMPLETED	12 342 665
Apollo Bridge 5 Converter Transformers	TRANSFORMERS	COMPLETED	11 554 690
Apollo Upgrade DC Harmonic Filters	CAP BANKS	EXECUTION	11 800 000
Apollo CS Line Voltage Divider Replacement	LINE DIVIDERS	EXECUTION	62 143 000
Apollo CS Problematic Bypass Breakers	BREAKERS	EXECUTION	219 225 000
Apollo CS HVDC Line No. 1: Tower 322	TOWER	COMPLETED	4 266 123
Apollo Songo PLC refurbishment	PLC	EXECUTION	14 200 000
Apollo Storage Plinths DC Side	NON-PLANT	CONCEPT	11 600 000
Apollo CS: HVDC Refurbishment Phase 2: Bridge 4 Transformers	TRANSFORMERS	EXECUTION	296 156 754
Apollo CS: HVDC Refurbishment Phase 2: Bridge 2 Transformers	TRANSFORMERS	EXECUTION	296 156 754
Apollo – Cahora Bassa No. 1 and 2 Quad Spacers	LINES	CONCEPT	130 000 000
Apollo CS: Deluge System Water Storage Tank	NON-PLANT	CONCEPT	17 769 000
Apollo – Cahora Bassa Lines Bird Guards	BIRD GUARDS	CONCEPT	5 400 000
NSP1 Security Build 2 – Apollo (NKP) ERA	SECURITY	EXECUTION	20 450 000
Apollo CS: Replacement of Pole 1 533 kV Reactor	REACTORS	CONCEPT	155 500 000
Apollo HVDC Lines Reinsulation Project	REINSULATION	COMPLETED	44 602 502
Apollo CS: CCTV Installations	SECURITY	COMPLETED	3 834 421
Replacement Bushings for Converter Transformers – Apollo CS	TRANSFORMERS	COMPLETED	17 193 111
Apollo CS Install Spare Transformer in Bridge 6	TRANSFORMERS	COMPLETED	10 000 000
Apollo CS Install Spare Transformer in Bridge 8	TRANSFORMERS	COMPLETED	10 000 000
Apollo 2 x Converter Transformers + Reactor (Capital Spares)	TRANSFORMERS	COMPLETED	109 145 411
		TOTAL	1 513 149 254

The maintenance costs component, provided in Table 2 below, for a period of 14 financial years, amounted to over R165 million, which included the following:

• Servitudes maintenance
• Maintenance by Rotek Industries
• Materials
• Equipment spares
• Production plant services
• Facility services

The maintenance costs information can only be provided from the 2009/10 financial year, as Eskom changed to the current SAP system at that point. Obtaining information prior to that period will require more time, as this information has been archived.

Table 2: Maintenance (from the 2009/10 to the 2022/23 financial years)

(C) Are there long-term plans for the system in terms of (i) life-span of the existing infrastructure, (ii) expansion of the system and (iii) on-going usage?

(i) Details of the long-term plans for Apollo HVDC in terms of the lifespan of the existing infrastructure (refurbishment plan) are provided in Table 3 below.

Table 3: Long-term refurbishment plan

PROJECT NAME	PLANT TYPE	INITIATIVE PHASE	TOTAL (rand)
Apollo Install New Earth Electrodes	ELECTRODE	PRE-CONCEPT	14 000 000
Apollo CS: Permanent Bipole Bypass	ISOLATORS	PRE-CONCEPT	69 010 000
Apollo CS: Replace Bridge 1, 3, and 7 Transformers	TRANSFORMERS	PRE-CONCEPT	888 470 262
Apollo CS Repeater Station Pietersburg Battery System	BATTERY	PRE-CONCEPT	15 000 000
Apollo CS HVDC Line No. 1 Refurbishment	LINES	PRE-CONCEPT	230 000 000
Apollo CS HVDC Line No. 2 Refurbishment	LINES	PRE-CONCEPT	230 000 000
Apollo CS Problematic Equipment Phase 2	SUBSTATION	PRE-CONCEPT	105 600 000
Apollo CS Problematic Equipment Phase 3	SUBSTATION	PRE-CONCEPT	124 200 000
Apollo SS Auxiliary Transformer Bund Walls	NON-PLANT	PRE-CONCEPT	10 300 000
Apollo CS: HVDC System Ref. Upgrade Phase 3	SUBSTATION	PRE-CONCEPT	1 700 562 263
		TOTAL	3 387 142 525

(ii) Currently, there is no long-term plan for expansion for the Apollo Converter Station.

(iii) Hidroeléctrica de Cahora Bassa (HCB) has indicated that it would like to start engagements in terms of the contractual extension beyond 2030. Eskom will be open to such engagements, as HCB power forms part of the baseload power supply mix.

Reply:

(1)(a)Mozambique is currently developing a number of power plant projects and is engaging with South Africa at present. At this point, there are no firm commitments. The projects would need to be incorporated into the Integrated Resource Plan (IRP).

(1)(b) Yes, Eskom is currently using the power from Hidroeléctrica de Cahora Bassa (HCB), as well as purchasing power from the Southern African Power Pool (SAPP) competitive markets, which, at times, includes power from Mozambique. Eskom has aspirations to buy power from cross-border countries. Depending on the pricing and technical feasibility, Eskom will procure power from Mozambique in terms of a fair, transparent, and equitable process.

(2) Eskom utilises the allocated megawatts (MWs) most of the time. On odd occasions, Eskom is unable to access the power when there are limiting factors, including infrastructure faults.

(3) (a) 31 March 2030.

(b) The price is based on avoiding the cost of building a baseload station.

(c) 1 150 MW capacity.

Reply:

(1)(a)

Cabinet has resolved that the current generation fleet must be maximised based on a broader socio-economic benefit analysis and interest of securing energy security. In terms of the NERSA license conditions, Komati Power Station cannot be decommissioned until the shutdown has been approved by NERSA, although Komati Power Station units has been shut down cannot be decommissioned until the NERSA and the PFMA approvals are received.

Work is continuing to investigate the cost benefit of the extension of life and or the repurposing of the existing fleet. If it is feasible to continue to use the flue stacks, cooling towers or any other infrastructure for other new technologies that might feasibly be constructed at the Komati site, the repurposing and repowering will take that into account

(1)(b)

Currently, Eskom does not intend to shut down any more stations and replace them with renewables. Eskom does however intend to install renewable capacity at current sites while they are still operational.

(2)(a)(i)

Currently, only Komati Power Station has been shut down for repurposing and repowering. The intention is to construct solar PV, wind and battery storage. In addition, other repurposing options are being considered.

(2)(a)(ii)

Komati was shut down at the end of October 2022. (c) No other units have been shut down since the shutdown of Komati. Eskom is currently studying the feasibility of continuing to operate the older stations.

(3)

The conditionality is imposed by the funders

Coal will continue to be a feature of South Africa’s energy mix, which will include, gas, nuclear and renewable technologies. I.e. solar PV and wind. Our National Socio-economic and Energy security requirements will dictate our investment choices and the funding thereof.

Notwithstanding the conditions attached to climate change funding, South Africa has not formally entered into any agreements. It is up to the lender to decide whether it is in its overall interest to comply with the conditions to access the concessionary aspects or to attempt to raise loans on commercial terms.

 

 

 

Reply:

a) Synchronisation of Kusile Unit 5:

• Kusile Unit 5 is forecast for first synchronisation in November 2023.

b) Return to operation of all other Kusile units:

• Kusile Unit 4 has been in commercial operation since 31 May 2022, the unit was taken out on a 30 day planned outage and was scheduled to return to service on the 17 September 2023, the unit was returned as planned on 17 September 2023.
• Kusile Units 1 to 3 are forecast to return to operation between October and November 2023
• Kusile Unit 6 is forecast for first synchronisation in August 2024.

Name	Date of return
1. Kusile 1	30 Oct -11 Dec
2. Kusile 2	30 Nov-24 Dec
3. Kusile 3	14 Oct-26 Nov
4. Kusile 5	28 Oct-30 Dec

Reply:

The appointment of special advisors is done in terms of section 12A of the Public Service Act, 1994 as amended and is limited to two full-time equivalent positions for each Minister and Premier, unless Cabinet or the relevant Provincial Executive Council approves a higher number up to two additional full-time equivalent for each Minister and Premier because of work requirements.

The National Energy Committee (NECOM) is led by Minister Kgosientsho Ramokgopa and comprises of more than 100 high-level officials from across government, Eskom, business and social partners. NECOM is overseen at a technical level by the Director-General in the Presidency to advice on the energy crisis, the removal of barriers to new generation capacity and unlocking energy from various sources, including Eskom, Independent power producers, businesses and households.

It is important to distinguish that unlike officials seconded to NECOM for the purpose elucidated above, the special advisors are full-time in the office, advising the Minister in his engagements and discharging his delegated constitutional duties.

(b)

NAME	SURNAME	DESIGNATION	NOTCH
Sarel Jacobs	De La Rouviere	Special Advisor	R 2 158 533.00
Silas Mzingeli	Zimu	Special Advisor	R 2 158 533.00

(c) MR. SILAS ZIMU AND JACOBUS DE LA ROUVIERE

Mr. Silus Zimu

Mr. Zimu started his career in the electricity industry when he joined Eskom in 1992 where he worked as an engineer in the generation group. He then joined City Power as a General Manager - Planning and Technology and was thereafter promoted to Vice President, Customer Services. Because of the knowledge and passion he has for Engineering Operations, Silas was then appointed as a Vice President of Operations in December 2003 and served on Executive Management Committee.

Mr Zimu acted in the CEO position from February 2006, until he was appointed as Managing Director of City Power. Mr. Zimu was CEO of Suzlon Wind Energy South Africa (Pty) Ltd between October 2011 and 2015. He also served as a special advisor on Energy to Former President Jacob Zuma between 2015 and 2018.

Mr. Jacobus de la Rouviere

Jacobus de la Rouviere has over two decades experience in the independent power production cosmos and worked closely with the Southern African Power Pool countries like Eswatini and Mozambique. He has been a panellist in numerous energy summits and has published articles related to Eskom debt and possible solutions in resolving its existential challenges.

His key attribute lies in the development of realistic energy security mechanisms and installations that speak to critical evaluation of exit-price which will not burden the South African Economy with premium energy tariffs. Furthermore his strategic interventions have been tailored to resolve base-load underproduction and delivery of projects within the predicted project time.   

Reply:

a) The staff establishment for the private office of members of the executive is done in accordance with the approved 2019 guide for members of the executive in order to provide administrative support to the member in discharging his/her delegated constitutional duties. The operational cost relating to the Minister in the Presidency responsible for Electricity is drawn from the budget of the Presidency.

 

Reply:

1. Improvement of the EAF is a function of, inter alia, progress on the generation capacity of the Eskom installed fleet, on boarding of renewable energy and success of the Demand Side Management (DSM) programme. The build operate transfer model is being discussed in relation to the development and expansion of the grid.

2. Please refer to answer above.

Reply:

(a) and (b)

Relationships in the workplace are a responsibility of everyone - employees, supervisors, managers, executives, and trade union relationships. The Recognition Agreement signed with trade unions governs these relations and management programmes driven from Human Resources (HR) are in place to ensure that there is an engaged workforce in a harmonious and safe working environment. We continue to do everything to achieve this and below is a detailed account of the initiatives deployed to repair the relationship with labour, employees and between executives:

Eskom has an approved employee engagement programme geared towards enabling our employees to connect with each other and with the organisation. It is a 10 Platform programme that involves all stakeholders ranging from labour, bargaining level, managerial and executive employees, with strategic engagements with trade union leadership of the three recognised trade unions - NUMSA, NUM and Solidarity.

a) Eskom Executive messaging and communication platforms are leveraged to continuously engage leadership and employees to promote a sense of connection to the business and one another. This also includes organisation-wide publications, such as The Guardian, which promote a deeper sense of connection, engagement and relationship building amongst employees.

b) Eskom provides the infrastructure for various employee platforms, committees, and networks to strengthen communities of practice, enabling employees to keep on the pulse of the latest developments – this is a concerted effort made to ensure that wherever possible, employees hear news about Eskom from internal communication channels first and not external media. It is acknowledged that more can be done to strengthen the integration between internal and external communication efforts.

c) Eskom implemented two new talent development programmes to strengthen talent pools, build and retain leadership skills, and improve succession planning and leadership continuity. The top talent programme is focused on general and executive management positions, while the millennial talent programme is aimed at middle and senior management positions. The programmes commenced in October 2022 and will run until March 2024, whereafter the next cohorts will be selected. These programmes support and enrich relationships among Eskom’s leaders. In addition, Eskom rolled out the Management Development Programme (MDP) for 2022-2024 to supervisors, managers, and senior managers to equip leaders in their role to manage employees effectively.

d) Through its Employee Value Proposition (EVP) programme called “More for Me” that provides Eskom employees with over 1200 psychosocial resources which is available online 24/7 and serves as an additional tool to promote employee wellbeing, the Eskom Nkanyezi Programme which is an employee rewards/loyalty programme that offers employees discounts on various products and services through external service providers.

e) The Eskom launched the 1:1:6:10 Eskom Culture Transformation Programme, which is a key enabler for delivering a high-performance ethical culture as we drive the turnaround plan and power growth sustainably. This is backed by a Change Agent Network (CAN), appointing several change agents and champions (approximately 150 individuals). Eskom’s CAN serves as a critical connection/bridge between employees and leaders on all aspects related to Change Management and Culture Transformation.

f) The annual Eskom Human Capital Organisational Effectiveness (HC OE) Survey and other pulse surveys have been rolled out to assess employee views on several key dimensions of Employee Engagement, Employee Value Proposition and Organisational Culture and Change. Action planning within divisions to address survey gaps raised by employees also serves to strengthen relationships and drive enhanced morale.

g) The health and wellbeing of our people are important. Eskom has rolled out several health and wellness programmes that are intended to empower employees to make healthy and safe choices through prevention, treatment, care and support, education, and partnership. Of note to mention, Eskom’s COVID-19 response strategy was anchored in intense employee engagement and change management to drive performance and behaviour modification and was widely welcomed and appreciated by employees.

h) The employee assistance programme (EAP) continues to add value through counselling and psychosocial support programmes. This initiative is a contributing factor to help repair relationships as employees and management receive professional intervention and support in managing related challenges. Over the past year, mental health was identified as the most common problem affecting employees who contacted the EAP. In response, Eskom launched a digital application, LiveWell, in March 2023 to aid employees in dealing with mental health and stress-related challenges.

i) Events related to celebration, recognition and acknowledgement of excellence have been implemented to create unique employee experiences, which positively impacts employee relationships and morale.

j) Enhanced employee engagements, visible felt leadership, Gemba walks, engagements, Boots-on-the-floor site visits etc. have been conducted across various Eskom business areas. A Gemba Walk is a workplace walkthrough which aims to observe employees, ask about their tasks, and identify productivity gains. Hence, concerted efforts have been made to encourage executives to get out of the office and into the field, engaging employees and fostering improved relationships.

k) Employees at all levels of the organisation have undergone their annual declaration of interest submissions thus ensuring adherence to Eskom’s desired business conduct and ethical requirements. This, together with other related initiatives and associated training, builds trust and confidence amongst employees that Eskom is serious about eradicating corruption whilst simultaneously promoting ethics and integrity.

l) Successful conclusion of the Central Bargaining Forum (CBF) negotiations in June 2023 which resulted in a three-year collective agreement between Eskom and the three recognised trade unions on basic salary increases and improved Conditions of Service for Bargaining Unit employees. It bears noting that this is the first time in more than a decade that the parties have reached a collective agreement within the CBF process. This is a testament to the strengthening partnership with the trade unions. Relationships fostered during this process, will no doubt work towards the best interests of Eskom and the country.

m) Moderated (once per round) communication during the 2023 CBF process to allow all parties adequate time to engage their members/key stakeholders. This moderated (once per round) communication approach differed from the previous approach of daily Group Chief Executive messages to all employees and served to enhance the negotiation process. It also demonstrated respect for the views of Organised Labour, who had requested a more moderated approach to CBF GCE messaging and employee communication.

n) Employee and labour engagement initiatives continue to be delivered through various platforms, including leadership employee and executive engagement, organised labour, and Eskom leadership engagements through for a such as the strategic forum, leadership site visits, executive and staff interviews, and employee communiques and events to promote recognition and the celebration of success in the business. To continue in building a harmonious working relationship with trade unions, several initiatives were deployed from Human Resources, and they are:

• • An internal and an external expert disciplinary tribunal to supplement the current management of discipline processes to alleviate the backlog of cases. This will expedite the cases and improve fairness thereby building trust among organisational stakeholders. This will expedite disciplinary matters and create an easier process to manage conflict.

• • During the 2023 wage negotiations, Eskom reviewed the Disciplinary Procedure and Grievance Procedure with trade unions to ensure inclusivity and everyone giving an input, and these were implemented on the 1 July 2023.

• • We facilitate masterclasses on various topical issues to educate, empower and create awareness on labour relations and the management thereof across the company.
  • Other labour participative structures throughout all levels of the organisation are healthy and running well. These include the Central Consultative Forum, divisional forums, and business unit forums. The parties have agreed to reflect on their behaviours and submit proposals on how to improve the functioning of the structure and these will be rolled out continuously.

• • We had a third party facilitated discussion on how we can improve our relationships and how to apply our Recognition Agreement. Recently a Health and Safety Committee meeting consisting of top management and trade unions was held chaired by the Acting Group Chief Executive focusing on health and safety and the commitment of all parties to create a safe working environment.

• • We have introduced new courses to create an understanding of our policies and procedures. Further, we build capacity by conducting train-the-trainer courses that includes part-time shop stewards.

 

Reply:

The Energy Action Plan (EAP), announced in July 2022 remains government’s overarching strategy to tackle the energy crisis and to attain energy security.

Our set of interventions are buttressed on the following pillars.

• Fix Eskom and improve the availability of existing supply.
• Enable and accelerate private investment in generation capacity.
• Accelerate procurement of new capacity from renewables, gas and battery storage;
• Unleash businesses and households to invest in rooftop solar and other demand side management progammes.
• Fundamentally transform the electricity sector to achieve long-term energy security

These interventions are geared to ensure the Country is safely navigated out of the immediate crisis of load shedding and our energy demand and supply is harmonized. The roll out of an aggressive national demand side management campaign will further help stabilize demand with the immediate generation capacity constraints, and in the medium-term additional emergency energy will be introduced through the uptake of surplus energy within the South African energy pool.

The Ministry continues to work with Energy Intensive Users, the renewable energy sector Eskom, and other stakeholders across the energy value chain to ensure that beyond the immediate crisis, in the medium to long term, energy security is restored by increasing production in line with the energy-mix profile set out in the Integrated Resource Plan, and the strengthening and expansion of the national transmission infrastructure as codified in the Transmission Development Plan.

Reply:

1. No.

1. The mandate holder for the JETIP belongs to the Department of Forestry, Fisheries and Environment, we advise that you accordingly direct the matter to their office.

Reply:

1. There was no emergency procurement undertaken during the state of disaster gazetted on 09 February 2023.

 

1. (i)-(ii), (bb), (cc) (dd) Notwithstanding work done by Eskom for risk mitigation, there was no emergency procurement done since the establishment of the National Energy Crisis Committee.

 

Reply:

1. The short-term measures include the following:

• 1. Eskom has completed the engineering planning and identified and scoped the relevant infrastructure projects that will enable connection of new generation in line with the Integrated Resource Plan (IRP) and bid windows to come.
  2. Eskom has allocated a capital budget of R74.21 billion to the Transmission Division over the financial years 2024 to 2028. This is an increase from the previous figure of R59.9 billion and shows an appreciation for the urgent need to close the Transmission infrastructure gap.
  3. Eskom has embarked on various other measures to give some certainty that the projects will be delivered, such as reviewing manpower numbers, reviewing equipment supply, and looking at project development and construction capability.
  4. The recently established Energy NATJOINTS Workstream 10 is monitoring this programme closely and escalating matters that require unblocking, such as environmental approvals and rights of way approvals.
  5. Over and above these measures, Eskom is developing standard operating procedures to adopt best practices in network modelling that will allow for more renewable energy to be connected to existing infrastructure in exchange for moderate curtailment. This will be quicker than constructing new power lines and substations. 

(2) what are the relevant details of the kind of models and solutions for transmission build-outs that have been developed for (a) maintenance and upgrades and (b) new builds?

REPLY

For maintenance and upgrades, Eskom uses a combination of outsourced and in-house capabilities, providing services such as servitude, transformer, and switchgear maintenance.

Eskom’s Enterprises business is geared up for some of this specialised work.

(2)(b)

For new build:

• The same as the above applies, even though the volume of in-house is much smaller.
• Eskom will use a combination of the multiple package system (engineering, procurement, and construction management (EPCM)). Contracts for these services already exist.
• Eskom will use the engineering, procurement, and construction (EPC) methodology, sometimes called “turnkey”. This method is expected to reduce the administrative burden of multiple procurement and project management. One contract for these services has been issued to the market, and a second one is in the preparation stage.
• Eskom will also use the owner’s engineer (OE) method of project development and project management. A contract for these services is under evaluation

 

Reply:

The Minister is appraised of his responsibilities. On the 26 May 2023, President Cyril Ramaphosa, invoking Section 97 of the Constitution, signed a proclamation which transferred to the Minister in the Presidency responsible for Electricity certain powers and functions entrusted by the Electricity Regulation Act (Act No 4 of 2006.

President Ramaphosa transferred to the Minister in the Presidency responsible for Electricity all powers and functions contained in Section 34(1) of the Electricity Regulation Act, which were previously entrusted to the Minister of Mineral Resources and Energy.

In addition, the President transferred relevant powers and functions set out in Section 34(2) of the Electricity Regulation Act which are necessary to direct the procurement of new generation capacity and ensure security of supply.

Reply:

The Minister presents regular updates to the Cabinet and to the public through the weekly NECOM briefings on the state of generation and our capacity to address the frequency and intensity of loadshedding. Whilst every effort is been made to ensure that we reduce loadshedding, there is no definitive timeline, as this is, inter alia, a function of improvement to generation capacity of the Eskom installed fleet, on boarding of renewable energy and success of the Demand Side Management (DSM) programme.

Whereas many of the interventions being pursued will results in overall improvement to the demand-supply equilibrium, it remains premature to suggest load shedding will be over by the end of year. It is worth noting that generation performance showed improvement from the preceding two weeks (22 May 2023 – 06 June 2023) The average available generation improved by 631MW from 28382 MW to 29013 MW (07 June 2023 to 19 June 2023).

Between 15 May 2023 and 15 June 2023, Eskom’s unavailable plant capacity due to unplanned breakdowns (UCLF), Partial Load Losses (PLLs), and outage delays has decreased by 3580 MW from 18 255 MW to 14 765 MW. These improvements in generation plant performance have resulted in an upward trend in the Energy Availability Factor (EAF) and a reduction in the severity of load shedding from daily stages 4-6 to stage 3 for the period under review, largely the stage 3 was applicable to evening peaks, with the remaining part of the day with no load shedding. EAF for June is trending above 60%. Generation last achieved 61.39% EAF in August 2022.

Reply:

The Eskom board and management continues to deal with management and operational shortcomings that impede the optimisation of generation capacity, in this regard, the necessary disciplinary action is being pursued as required by relevant legislation and sector collective agreements.

In addition, an Energy Safety and Security Priority Committee was established to address ESKOM-related crime on an inter-departmental, multi-disciplinary basis to address the objectives of Work Stream Six of the National Energy Crisis Committee (NECOM).

A total of 1952 Eskom-related cases were reported to the SA Police Service between 1 April 2022 and 29 May 2023, with 1405 cases still under investigation, and 126 arrests have been made.

Whilst much remains, these interventions are beginning to turn the situation around, and there are indications that operational measures implemented have clearly disrupted the activities of criminal syndicates

Reply:

An Energy Safety and Security Priority Committee was established to address ESKOM-related crime on an inter-departmental, multi-disciplinary basis to address the objectives of Work Stream Six of the National Energy Crisis Committee (NECOM).

A total of 1952 Eskom-related cases were reported to the SA Police Service between 1 April 2022 and 29 May 2023, with 1405 cases still under investigation, and 126 arrests have been made.

Whilst much remains, these interventions are beginning to turn the situation around, and there are indications that operational measures implemented have clearly disrupted the activities of criminal syndicates.

Reply:

The Ministry had conversations with the Western Cape, Eastern Cape and Gauteng Provincial governments, the Cape Town, Buffalo City, Johannesburg and Nelson Mandela Bay Metropolitan Municipality regarding their individual energy needs. In addition, the Ministry is scheduling fresh visits to each of the 9 Provincial Executive Councils, the leadership of Metropolitan Municipality and secondary Cities during June/July 2023 on the Energy Action Plan (EAP) and the interventions being undertaken to improve generation and reduce demand. These conversations will include the impact of revenue for municipalities and challenges regarding wheeling frameworks and feeding tariffs.

 

Reply:

(1)- (2) & (3) On the 23rd of October 2022, a section of the Kusile Unit 1 flue gas duct (the equivalent of a chimney in a household) exiting the sulphur dioxide absorber failed on the horizontal rubber expansion joint as well as the compensator (a bend to direct flue gas up the chimney that allows for thermal expansion of the chimney) whilst the unit was on forced shutdown for Flue Gas De-sulphuration recirculating pump repairs. The failure at Unit 1 subsequently affected units 2 and 3 as the ducts for all these three units are welded together.

ESKOM is currently fabricating and erecting temporary stacks at Kusile Power Station to enable operation of the three units without the use of the Flue Gas Desulphurisation (FGD) mechanism which is an emission-abatement technology, for a period of 13 months while the flue gas ducts are being repaired. This will be subject to final authorisation by DFFE to grant ESKOM an exemption to operate the units at full capacity with the temporary stacks. The temporary stacks will be completed by the end of November 2023 and Units 1, 2 and 3 synchronised to the grid by the end of December 2023.

The steel fabrication for the chimney pieces are fairly well, factories are operating 24 hours and are ahead of schedule. The welding of the steelwork is done at the factories while the stacking together of the pieces is consolidated on site.

Unit 3 is projected to be completed by the 28 November 2023, unit 1 is projected to be completed by the 11 December 2023, while Unit 2 is projected to be completed by 24 December 2023. Unit 5 is expected to be completed by October 2023 and unit 6 is expected at the end of 2024

Reply:

a) The failed transformer PAMS 65 that is referred to by the Honourable Mr Singh was replaced on Saturday 13 May 2023 according to the process where all customers who had tampered with their meters to avoid paying for electricity had paid the required fine and illegal connections had been removed. Important facts to note regarding this transformer are that some customers were found to have converted themselves to prepaid meters and had installed sub-meters; in such cases, the revenue does not come to Eskom.

Eskom never disconnected or suspended electricity to this area; however, the transformer overloaded and isolated itself due to overload caused by illegal connections, bypassed meters, and vandalism of the infrastructure.

Eskom is experiencing a very significant increase in transformer failures in residential areas due to meter tampering, illegal connections, and vandalism of Eskom’s infrastructure. Replacement of infrastructure without addressing the root cause has become unsustainable, costly, and unsafe for Eskom’s technicians and members of the public, specifically also innocent children.

In such cases, Eskom has an obligation to eliminate the associated safety risk before a transformer is replaced. The replacement of transformers without resolving the problem leads to repeated failures and unsafe conditions for our technical team and the community, and this is also financially unsustainable.

The existing infrastructure has been installed to cater for the supply requirements of Eskom’s legally connected customers.

(b)In addition to the Electricity Regulation Act and its licence conditions, Eskom is required to comply with, among others, NRS 047 Part 1: Quality of Service (“NRS 047”) and the Distribution System Code (“the Distribution Code”), attached to this as Annexures A and B, respectively, which regulate matters pertaining to unplanned supply interruptions. Clause 4.5.3 of NRS 047 regulates the restoration of supply after unplanned interruptions. Under “normal circumstances”, Eskom would be required to follow the restoration period provided in NRS 047. This provision must be read together with paragraph 18.4(1) of the Distribution Code, which requires customers to comply with instructions from Eskom before the supply of electricity is restored. Paragraph 3(1) of the Distribution Code, furthermore, states that Eskom is required to take remedial action to relieve any condition that may jeopardise the reliability of the Distribution system.

Therefore, before the transformer can be replaced and supply restored, an audit must be conducted, and the customers normalised. In line with the regulations and Eskom’s processes, community members who are found to have tampered with their meters are issued with tamper fines of R6 052.60 per tampered meter and all illegal connections are removed. Furthermore, at least 75% of customers legally connected to the transformer must be in good standing before the transformer is replaced. This is to ensure that the infrastructure on the ground will be able to cater for the required load.

Reply:

(1) At present, Eskom is engaging with both the Department of Health and the Department of Water and Sanitation regarding their points of supply in the Eskom supply area identified as critical. Once completed and where possible, measures will be implemented to mitigate the impact of loadshedding as far as practically possible. Currently, Eskom exempts or partially exempts 25 public health establishments within its area of supply.

The Ministry of Electricity has developed costing scenarios for installing an embedded generation (solar installation) to address the impact of load shedding and mitigate the impact of high diesel costs on medical facilities (large and small hospitals).

Small Hospital (400kW power load) based on a 4-hour outage period for battery storage, solar panel and inverters option; R13 million per hospital capital expenditure is required. Large Hospital (1MW power load) based on a 4-hour outage period for battery storage, solar panel and inverters option; R59 million per hospital capital expenditure is required.

Based on the Department of Health figures, to cover 137 Hospitals (varying between small and large), R10.1 Billion capital expenditure will be required to provide a combined Solar, Battery and inverter solution.

In contrast, for the same 137 small hospitals, diesel generators will cost R89.1 Million in capital costs, whilst large hospitals will cost R411 Million (capital costs). However, the operating cost (primarily diesel purchase) will cost R3.3 Billion and R655 Million annually for large and small hospitals, respectively.

A rapid deployment of embedded generation or “micro-grid” solutions, including roof-top solar for hospitals, other critical installations, and economic hubs, will be possible through an aggregated power purchase agreement. Ministry to issue RFI before end of July 2023 and outline a fast track procurement process to secure IPPs for micro gridding.

(2) (a), (b), (c), (i) and (ii) Where a facility is deeply embedded in the network, partial exemption at lower stages of loadshedding has been granted. Eskom has concluded a preliminary assessment of establishing dedicated feeders for certain hospitals. This assessment has been shared with the Department of Health, and discussions on implementation are ongoing. A similar approach will be followed for other critical infrastructure. The implementation time is envisaged to take between 12 to 24 months, after the investment decision, depending on the type of solution and other factors such as environmental approvals and land acquisition.

(3)The legal matter before the Courts falls within the responsibility of the Minister of Public Enterprises and the Honourable Member should accordingly direct the question to the relevant Ministry.

Reply:

Loadshedding in general causes damage to municipal electrical transformers and “damage to houses”. This is not necessarily the case. This has to be corrected and clarified upfront.

(a) Loadshedding in itself cannot reasonably cause damage to houses. Loadshedding itself cannot cause such damage, but there is a possibility that electrical power surges as a result of loadshedding, where voltage rises or falls above or below acceptable thresholds that may cause damage to equipment and / or appliances. Eskom’s customer agreements and conditions of service stipulate these possibilities for which the customers must take reasonable precautions such as, not leaving energised electric appliances unattended. 

The remedial action applicable, where negligence on the part of Eskom can be proven, is through the official Eskom claims process and customers may be compensated after a validated claim. In order for customers to plan around loadshedding, Eskom has published its schedules and the stage changes are also communicated as and when they are triggered.

(b) Switching transformers on and off as in the case of loadshedding, is a general Eskom Distribution network occurrence. However, for planned switching or maintenance activities, automatic clearing of network faults occurs via protection operations. The equipment is designed for such eventualities. 

Well-maintained networks and transformers should be able to withstand the burden of loadshedding, both on the Eskom network and the municipal networks, however failures can still occur. The Eskom and municipality tariffs also account for the required planned maintenance and /or upgrading and replacement or repairs of failed equipment and it is therefore up to the relevant supply authority such as Eskom or the municipality, to plan and budget for eventualities of such transformer maintenance, repairs and/ or failures. 

Eskom Distribution does have such “viable measures” in place in the form of network maintenance and refurbishment strategies and execution plans, as well as strategic transformer spares. Transformer repair contracts with reputable suppliers, internally and external to Eskom are also in place to repair damaged transformers that can be repaired.  Eskom Distribution cannot reasonably comment on measures taken by municipalities to deal with transformer failures.

Reply:

1) As part of our contingency measures for the high utilisation of the OCGTs, additional offsite storage has been secured in Mossel Bay and in Cape Town.

(2)Eskom has experienced maintenance and engineering staff to address any failures at the OCGTs with the support of the Original Equipment Manufacturer.

(3)(a) and (b) The OCGTs can run at the anticipated load factors for an extended period. YTD for FY2024, the OCGTs are running at a load factor (GLF) of 22%. The OCGTs are expected to run at approximately 20% for the winter period, until the end of August 2023. The required OCGT load factors after this period will depend on the performance of the generation fleet and the demand

Reply:

The NRS048-9 specification states that bulk potable water supply points should be exempted from loadshedding where the network allows this. The issue is that the bulk water supply points very rarely have the necessary independent network connections that would allow this to happen, and the water pumps are distributed very widely in the electrical networks, so excluding them would mean unacceptably large amounts of load would not be available for loadshedding, reducing the effectiveness of the loadshedding system as a tool to stabilise the Grid.

End.

Reply:

Members of the Cabinet are accountable collectively and individually to Parliament for the exercise of their powers and the performance of their functions. Any unauthorized or premature disclosure of Cabinet meetings or information undermines the collective responsibility of the Cabinet.

End.

Reply:

(1) We advise the member to direct the question to the Department of Cooporative Governance and Traditional Affairs.

(2) The National Energy Regulator of South Africa (NERSA) is the regulatory authority, inter alia, on municipal electricity pricing guidelines. It publishes an annual determination of Municipal Tariff Guidelines and the revision of Municipal Tariff Benchmarks around May of each year, which is applicable to the following financial year (commencing in July 2023).

The public commenting period for the 2023/24 determination closed on 04 May 2023 and NERSA will accordingly publish their decision regarding the 2023/24 guidelines in due course.

Reply:

The mandate of the Minister of Electricity was outlined by the President, which is, the implementation of the Energy Action Plan and ending loadshedding.

Following various internal processes, the President will make a formal determination as to the assignment of power and functions of the Minister of Electricity.

The End

Reply:

a) The Ministry intends to fundamentally transform the electricity sector to achieve long-term energy security by working with Eskom to improve availability of the existing supply and by creating an enabling environment to accelerate investment in generation capacity from renewables, gas and battery storage.

b) In addition, the Ministry will develop innovative funding mechanisms for less affluent households to support the rapid deployment of demand-side interventions, including a blended finance mechanism to support solar PV rooftop installations.

The End

Reply:

Following his appointment, the Minister conducted a diagnostic assessment of he installed Eskom generation capacity resulting in the identification of a set of critical interventions to maximise the Energy Availability Factor (EAF) of the generation fleet.

Furthermore, the Ministry engaged a wide spectrum of stakeholders, including Industry, Labour, Original Equipment Manufacturers and the Diplomatic community who have all pledge support for strategic interventions to reduce the intensity and frequency of load shedding.

The immediate preoccupation is to improve the performance of the existing Eskom base load fleet, maximize the performance and output of peeking stations and suppress demand through an aggressive demand side management programme, which will be implemented with effect from May of 2023. Whilst these measures will contribute to the reduction and frequency of load shedding, it is not possible at this stage to commit to a definitive end date for loadshedding.

The End