ESKOM, DIE REDE VIR KRAGONDERBREKINGS?

Gepubliseer op 20 Junie 2014 | Geskryf deur Redaksie |

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alt Onderstaande artikel oor werkswyses van Eskom, die regime en BHP Billiton is vir die AVP aangestuur en werp ook lig op ons standpunt dat die staatsrede van Zuma, en in hierdie geval spesifiek oor toekomstige kragvoorsiening, deur hierdie soort praktyke bloot retoriek is en in die wiele gery word ten koste van die verbruiker wat vir die uiteindelike finansiering gemelk word bokant sy vermoë en wat billik is.

BHP BILLITON .... AND OUR POWER CRISIS (SOUTH AFRICA)

alt To: Hierdie e-posadres word van Spambotte beskerm. Jy moet JavaScript ontsper om dit te lees.

From: FP Neethling Sent: 18 June 2014 10:31 AM

Subject: BHP Billiton .... and our power crisis (south africa)

Re: Complaint and Statement “BHP Billiton ..... and our power crisis”

Statement

As you probably are aware, a matter that has been going on for a long time now here in South Africa is the controversial electricity contract between Eskom and BHP Billiton.

The question here: Is Nersa still investigating the deal as per Eskom’s request or has Nersa (Government) been corrupted by BHP Billiton and the investigation process suspended?! If you read the newspaper articles below properly you will realize what a huge negative impact this deal has on the poor people.

This matter is in the interest of our whole nation and our young democracy, black and white, but especially the poor people in this country.

Also, it should be noted that Eskom (the power utility in South Africa) has referred the controversial electricity contract in 2012 already to the National Energy Regulator (Nersa) for review but it now seems that the process by which and at Nersa has in some way been corrupted? Eskom is desperate to get the contract reviewed because of its devastating financial consequences for them and the extremely negative impact it has on all of its customers and especially of course also the extremely poor and vulnerable people.

After careful consideration, I must admit, I had no option but to report this matter to the Public Protector (Complaint Ref No: 7/2 – 003736/14 dated 2014.02.25) and also to the World Bank in Washington, DC who’s “funds are financing the construction of the Medupi power plant and investments in renewables (wind and solar) and energy efficiency” as well as to WEC and the IEA ( the World Energy Council and the International Energy Agency, respectively) who recently hosted the Africa Energy Indaba 18 to 20 February 2014 in South Africa.

Thank you.

Fred Neethling

Mr. Ben Martins, Minister of Energy, South Africa

Dr. Xolani Mkhwanazi, BHP Billiton and Chairman Billiton (S.A.), Johannesburg, South Africa

Ms. Hilary Joffe, Senior Spokesperson, Eskom, Johannesburg [resigned]

Analysis of Eskom's special electricity pricing deals with BHP 24 March 2013

“It is important to note that the Regulator is required to approve all special electricity pricing arrangements, and that this was in fact one of the suspensive clauses of (at least) the Hillside Potline 3 contract. In a letter to BHP Billiton on 5 February 2002, Eskom confirmed that the National Electricity Regulator (NER) had approved the special pricing arrangements. The CEO of the NER at the time was Dr. Xolani Mkwhanazi, who is currently the chairman of BHP Billiton South Africa, and is listed in Who’sWho Southern Africa as president and COO of Aluminium South Africa at BHP Billiton.

For the last few years, Eskom has been unsuccessful in efforts to renegotiate the unfavourable Hillside Potline 1, 2 & 3 contracts, where electricity is currently supplied significantly below Eskom’s average cost of supply. BHP Billiton has resisted any changes, and in 2012 the matter was then referred by Eskom to the National Energy Regulator of South Africa (NERSA) for review.

The Regulator will no doubt consider the legalities of the special pricing arrangements included in the contracts, whether they are fair, reasonable and in the national interest, or whether they are unreasonably discriminatory and prejudicial to other customers of electricity in South Africa.

Thembani Bukula, the NERSA regulator member responsible for electricity, has been quoted as saying that the review will be held in public in the next few months, and that one of the possible outcomes is the contracts may be declared invalid.”

From: FP Neethling [mailto:Hierdie e-posadres word van Spambotte beskerm. Jy moet JavaScript ontsper om dit te lees.]

Sent: 26 January 2014 02:21 PM

To: 'Ben.Martins'

Subject: FW: BHP Billiton ..... and our power crisis

Dear Sir,

Please note important e-mails to Eskom, Nersa and BHP Billiton for your kind attention and records.

F.P. Neethling

From: FP Neethling [mailto:Hierdie e-posadres word van Spambotte beskerm. Jy moet JavaScript ontsper om dit te lees.]

Sent: 08 January 2014 03:15 PM

To: 'Mkhwanazi, Xolani (BSA - Chairmans Office)'

Copy for your records:

From: FP Neethling [mailto:Hierdie e-posadres word van Spambotte beskerm. Jy moet JavaScript ontsper om dit te lees.]

Sent: 08 January 2014 02:38 PM

To: 'Hilary Joffe'; 'Media Desk'; 'Mohamed Adam'; Hierdie e-posadres word van Spambotte beskerm. Jy moet JavaScript ontsper om dit te lees.'">'Hierdie e-posadres word van Spambotte beskerm. Jy moet JavaScript ontsper om dit te lees.'

Subject: RE: BHP Billiton ..... and our power crisis

Dear Ms Hilary Joffe / Mr Mohamed Adam / Mr Willie du Plessis,

Thank you for your e-mail of December 2012 of which the content and your suggestion that I should rather approach Nersa, are noted.

Please note I have made some submissions subsequently to the National Energy Regulator (Nersa) but to date were not acknowledged by them and / or to the best of my knowledge have not been investigated by Nersa?

Can you please advise me of the correct procedure to follow to ensure my submissions are reviewed by Nersa and who the correct person would be and able to assist me in this matter.

Thank you in anticipation and much appreciated

Yours sincerely,

Fred Neethling

From: Hilary Joffe [mailto:Hierdie e-posadres word van Spambotte beskerm. Jy moet JavaScript ontsper om dit te lees.]

Sent: 07 December 2012 02:43 PM

To: Hierdie e-posadres word van Spambotte beskerm. Jy moet JavaScript ontsper om dit te lees.'">'Hierdie e-posadres word van Spambotte beskerm. Jy moet JavaScript ontsper om dit te lees.'

Cc: Media Desk; Mohamed Adam

Subject: Re: BHP Billiton ..... and our power crisis

Sir

I am sure you are aware that Eskom has referred the agreements with BHP Biliton to the National Energy Regulator (Nersa) for review. If you have a submission to make, that would be the appropriate forum.

Regards

From: FP Neethling [mailto:Hierdie e-posadres word van Spambotte beskerm. Jy moet JavaScript ontsper om dit te lees.]

Sent: Friday, December 07, 2012 02:27 PM

To: Hilary Joffe

Subject: BHP Billiton ..... and our power crisis

Eskom deal with BHP Billiton akin to power theft .... “.... There can be little doubt that the Eskom/BHP Billiton contract was essentially criminal in nature, irrespective of its signatures, and Parliament should force Eskom to declare force majeure (or vis. major) on its provisions, rather than forcing it to deceive the nation. ...”

BHP Hires U.K. Recruitment Firm to Find Kloppers' Successor – Report

http://www.foxbusiness.com/news/2012/11/07/bhp-hires-uk-recruitment-firm-to-find-kloppers-successor-report/

BHP disempowers us all ....

http://www.citypress.co.za/Columnists/BHP-disempowers-us-all-20121027

BHP Billiton power skeletons rattle again .... // read comments

http://www.moneyweb.co.za/mw/content/en/moneyweb-soapbox?oid=612728&sn=2009+Detail

The South African Civil Society Information Service

Article published on 18th March 2014

South Africa: Rip Eskom Apart

BY GLENN ASHTON, 18 MARCH 2014

ANALYSIS

While rolling blackouts are never a joke, many South Africans cracked an ironic smile when Minister of Public Enterprises Malusi Gigaba remarked that Eskom was better prepared to deal with their recent power supply crisis than in 2008. Thanks for that insight, Minister.

Problem is, we still have rolling blackouts six years on, with things looking pretty dire as we approach winter. As usual we all pay, in different ways, for these systematic failures at the highest levels. Surely it is time to rip the inefficient beast that is Eskom apart, for once and for all?

Our most recent energy crisis comes against the background of the total withdrawal from Parliamentary consideration of the Independent System and Market Operator Bill, which potentially could have opened up our power market by levelling the playing field away from Eskom domination, enabling broader access to energy suppliers.

The government shelved this bill for reasons which remain unclear. This all seems to run counter to Energy Minister Ben Martins' statement that Eskom could no longer be player, referee and linesman in the energy sector, when he spoke at a recent Energy Indaba.

The Independent Operator Bill has been in the pipeline for nearly four years, through several iterations. The fact that our Minister Gigaba feels sufficiently strongly to defend inefficient behemoths like Eskom, then we have a problem. While Ministers Martins and Gigaba may demonstrate public solidarity, their policy positions are incongruous.

In reality, the ongoing incompetence of Eskom to manage its affairs is inescapable. Not only has it failed to pull Medupi contractors in line, but it attempts to abrogate responsibility for wet coal. There are multiple levels of irony, piled one atop the other. First is the quaint way we refer to "load-shedding," rather than black- or brownouts, in our uniquely South African attempt to render such unpalatable reality more politically correct and expedient.

Second is how the most recent crisis was triggered by record breaking late summer rainfall, symptomatic of climate change. As one of the world heaviest polluters, South Africa, with Eskom in the lead, has failed to deal with its disproportionate emission levels. To further rub salt into this wound in the fabric of the ecosphere, Eskom, along with one of its suppliers, Exxaro, openly boast that we have 200 years of coal reserves, emphasising how this commercial vision blinkers our national energy policy.

In fact Eskom recently went yet further, asking for exemption from the stipulations of our long delayed National Air Quality Act because it would be too expensive to comply. Despite knowing about these requirements since 2004, Eskom has failed to address them. Even the proposed scrubbers for Medupi are to be postponed, indicative of a dismissive attitude toward the Air Quality Act.

Then there is the paradox that the company responsible for supplying sodden coal to Eskom, rendering the huge Kendal power station inoperable, was Billiton Coal. This is a division of the same transnational corporation, BHP Billiton, which receives Eskom power at prices well below cost for its Richards Bay aluminium smelters, devouring nearly 10% of our national energy supply.

Billiton Coal enjoys similar commercial confidentiality to Billiton Aluminium, where years of legal probing eventually revealed the true facts of its outrageously beneficial contracts with Eskom.

The Billiton Coal contracts are similarly inaccessible, limiting public oversight of this serial failure. Given the strategic impacts of these failures on our national economy, these agreements should be closely scrutinised, with the guilty party held to account. Surely it is not the business of the state to subsidise massive transnational corporations? The National Energy Regulator really ought to show its teeth, if it has any.

Whichever way you cut it there is little good to coal power generation. Not only does it generate greenhouse gases, it also dumps over 200 tonnes of mercury in our soil and seas every year, along with a broad range of other nasty pollutants.

Emissions are directly responsible for tens of thousands of deaths and illness. It destroys natural resources where it is mined. Despite all of this it remains central to Eskom policy for the foreseeable future.

The luxury of monopoly has blinkered Eskom to the extent that it simply cannot see beyond coal and nuclear. While it has commissioned some wind energy, this was only because of a compulsory offset for its World Bank loan to build Medupi and Kusile Coal stations, in a sop, a greenwash, to alternative energy.

So how should we restructure our overweight energy monopoly? Almost all energy analysts agree that the grid, that is the power lines and network to connect our national energy system, should become a stand-alone entity. This would immediately reduce Eskom dominance. It would also encourage the development of a smart grid, with an increased shift in focus away from large power plants toward decentralised medium, small and micro energy suppliers.

A major advantage of opening up the system, particularly to smaller operators, is that they are primary drivers of employment and economic growth. Eskom's historical focus has been an energy supplier to mining and heavy industry, such as the steel and petro-chemical industry.

This sector is contracting and shedding jobs. If South Africa is to become globally competitive it needs to shift toward a far more diversified economy premised on beneficiation and value-add to these primary industries.

Beyond creating a stand-alone smart grid, it is imperative to shift toward gas as a transitional fuel as part of the shift away from coal. Converting some of the older Eskom power stations, which are running out of locally accessible coal, to gas power would be one way.

Another is to replace our hugely inefficient diesel driven turbine generators with gas. By securing preferential rates from neighbours like Mozambique and Tanzania, each of which have massive gas reserves, we could rapidly start to transition toward a cleaner economy.

We should also increase research around ground-breaking new power sources. Modular concentrated solar power plants are one concept that South Africa ought to have researched rather than wasting billions on the Pebble Bed nuclear pipe dream. Another is to develop viable current generation modules to tap into the Mozambique Current running down our east coast at a constant 5 kilometres per hour.

By coupling these opportunities to other emerging decentralised energy sources of energy, such as cross-subsidised domestic and industrial solar installations, South Africa could come to the forefront of international energy and policy development, while creating employment.

In the final analysis, anything would be an improvement on the antediluvian, monopolistic state run Eskom dystopia that has actively prevented the emergence of a vision of a better energy vision for all. We certainly have sufficient resources - they just need to be prised from Eskom's greedy clutches.

Ashton is a writer and researcher working in civil society. Some of his work can be viewed at www.ekogaia.org