Independent report warns of catastrophic consequences at Eskom

JOHANNESBURG - An independent report on Eskom’s operations has warned of catastrophic consequences, if capacity constraints at its coal-fired plants are not addressed.

This comes after German Consortium VGBE released a scathing assessment of the poor state of some of Eskom’s power stations.

The report found that dysfunctional and overly complex management at the embattled power utility negatively impacted operations.

The 600-page report handed over to the National Treasury earlier this week, blames Eskom’s operational challenges on inefficient leadership.

A lack of authority and transparency by decision-makers and meddling at Megawatt Park are believed to be among the root causes of the crisis at the power utility.

Low staff morale, a shortage of technical skills and poor financial management have also made matters worse.

The report notes that removing red tape should be a top priority, particularly with staffing and procurement processes.

It proposes decoupling the coal fleet from the rest of the generation business, adding that the coal division needs to focus on revitalising existing power plants.

According to the report, urgent work needs to be done at Eskom's power plants including Medupi and Kusile, to avoid a total collapse.