The human face of recession.

[Dave A]

Almost every single power station has mines captive to supplying them with their requirements on a contract basis.

That should be in the past tense, Butch. And it wasn't "almost." You build coal power stations next to the coal which is going to feed them - period. It's far more cost efficient to run electricity down a power line than to move the equivalent energy in coal over the same distance. It's that convenient local coal supply that determines the life span of the station.

I suspect that supply by road hauliers was a black empowerment effort by Eskom which went wrong.

A new contender for understatement of the year.

It didn't go wrong - the consequences were entirely predictable (and was probably pointed out by some sage engineer and ignored before the decision was made). May I hasten to add that the failure was not because the contractors were "black" but because the method is so ridiculously suboptimal.

Final nail on the coal supply issue - what Eskom is paying is not based on cost-to-extract-and-deliver-plus-profit-margin (as it used to be), it's based on the international coal spot price plus delivery which is significantly higher.

The whole thing shows what happens when pie-in-the-sky political agendas are put ahead of economic realities. Government should be in the dock right alongside Eskom in this public consultation process they're going through at the moment.

Well, here comes the bill for all this folly...

There is no free lunch.

[desA]

Hi Dave,
You mention the words coal supply contracts which interests me. Almost every single power station has mines captive to supplying them with their requirements on a contract basis. As part of the contracts some of the running costs of these mines are funded by Eskom. Most of these mines are huge and should be capable of supplying the total needs of a power station quite easily. They are all connected by conveyor belt systems to their respective power stations. I suspect that supply by road hauliers was a black empowerment effort by Eskom which went wrong. Just look at the thousands of heavy trucks messing up our roads.
Butch Hannan

Very good point, Butch.

[desA]

What happened to the mini-nuclear power plants that Eskom was developing?

I will be prepared to bet that if a national power-consumption audit were to be conducted, properly, that you'd find out that SA has an excess of power to meet the needs of a modern, high-tech economy.

As I see it, if law were pased to ban electrical resistance heaters eg. geysers, that this would go a long way to re-balancing the power 'shortfall' - as per Australian lead. It makes no sense to keep adding bigger & bigger power stations - local stations should be erected close to consumer.

These local stations could run off bio-fuel, nuclear, hydro, solar, wind, wave - whatever was most cost-effective to serve the community requirements. Why on earth ship electricity over a huge, expensive grid, when a local power-station, close to user, can be installed?

[tonyflanigan]

What happened to the mini-nuclear power plants that Eskom was developing?

I will be prepared to bet that if a national power-consumption audit were to be conducted, properly, that you'd find out that SA has an excess of power to meet the needs of a modern, high-tech economy.

As I see it, if law were pased to ban electrical resistance heaters eg. geysers, that this would go a long way to re-balancing the power 'shortfall' - as per Australian lead. It makes no sense to keep adding bigger & bigger power stations - local stations should be erected close to consumer.

These local stations could run off bio-fuel, nuclear, hydro, solar, wind, wave - whatever was most cost-effective to serve the community requirements. Why on earth ship electricity over a huge, expensive grid, when a local power-station, close to user, can be installed?

Great point des.

I remember in the olden days Cape Town was served by Table Bay power station (I believe its a shopping mall now), and Athlone power station. There are numerous advantageous possibilities to your proposal.

Des for Prez!

[tec0]

Well, a lot of point... But, consider this, in coming months a few companies are now considering building their own power stations. Yes this is no longer just talk. A lot of scary rich investors are in town and I do mean “scary� these people don’t play games and to them it is about profit.

Fact is 4 big companies are now in negotiations to decide if they will keep the mining industry going or are they going to pull-out. Fact is they are pushing for privatisation of Eskom. It is to my understanding a solution because all the power-stations we know are not worth that much anymore. Half of them only have a few years left and then money will be needed to rebuild them.

Eskom do have a lot of money but these are real “power-players� and they are exploring a few options some of those options may even include educational development. Fact is Eskom is out of the count and someone “us� will have to pick up the bill.

Here are the alternatives:

>> Pulling out “not really an option if you look at the size of their investments�
>>Buying out “That may include investing in Eskom and or buying them out completely�
>>Building their own “This is actually financially preferable and will create job opportunities�

Still the never think that they will not simply “cut their losses�

[wynn]

Eskom was viable and in the last 10 years they f#?&@d up, they had their chance, now allow other players to also supply electricity.

Which reminds me, most coastal towns have there own grid, all we need is to insert a power supply at some point and we can snip the Eskom cables where they enter our area.