Report finds that 'dysfunctional management system' responsible for Eskom's woes

JOHANNESBURG - An independent report on Eskom’s operations shows that the State-owned company is in dire straits, as operational and financial challenges continue to bite.

An independent report, which was commissioned by Treasury, was released on Friday.

It assessed Eskom’s coal-fired power plants in a bid to improve availability, reliability and the performance of the embattled power utility’s coal fleet.

Eskom’s energy availability factor dropped to lows of 50 percent at the start of the year.

The availability factor measures the performance of Eskom’s power stations.
As government tries to ease load shedding, analysts have already forecast that the power utility will miss its 2024 target of 65 percent by this month.

The report found that the main root cause for the low EAF is the dysfunctional management system at Eskom.

It says this is characterised by inefficient processes, especially in procurement, a lack of authority and a lack of transparency by decision-makers.

This coupled with what is described as a high-level of interference from Megawatt Park has led to unreliable power plants.

Kendal, Kusile and Tutuka are among the worst performing of the dozen coal-fired plants.