Eskom says the risk of load shedding is inevitable. This comes after the utility recently announced that four of its power stations have less than 10 days of coal supply left.

In total 10 of the utility’s power stations are running below margin with less than three weeks of coal supply left.  This is contrary to the National Energy Regulator of South Africa’s stipulation that power stations must have a coal stockpile of 21 days in order to prevent services from being affected.

Eskom spokesperson Khulu Phasiwe says the utility is currently in the process of rectifying the situation and ensuring that new coal suppliers are appointed soon.

“We have spoken to energy regulator Nersa about the challenges we had with coal supply. We’ve started negotiations with various suppliers and soon we are hoping to sign contracts.”

“We will be signing a contract with 12 suppliers that we have already started negotiations with, so we are in the process of trucking coal from Medupi to Kendal and Khusile power stations. We are in negotiations with Transnet so that they can also rail some of the coal to Mpumalanga power station.”

Poor management to blame?

Meanwhile the Organisation Undoing Tax Abuse (Outa) says it believes the coal crisis is a direct result of poor management and “mischievous attempts to purchase emergency coal at excessive prices.”

“This is a clear indication that bad management decisions at Eskom are at the heart of our high electricity prices. Depleted coal stock piles will result in coal being purchased at premium prices, which will likely result in Eskom requesting another electricity price increase,” explains Ronald Chauke, Outa’s Manager: Energy Portfolio.

Outa is urging the new board to act speedily to resolve this coal shortage crisis and embark on forward planning measures that will prevent consumers from being held to ransom.