Meet Eskom COO Jan Oberholzer: A man in SA’s power hot chair

JOHANNESBURG — With news that Eskom is anticipating to load shed during the early January once again, it would appear that the embattled power provider’s dark times are far from over. The business is saddled with huge financial obligation and extremely dirty, outdated coal plant technology. It’s a financial tragedy waiting to occur. But because SA is full of monopolies (and also the ANC federal federal federal government is intent on perpetuating them) South Africans sit with a massive issue on their arms that’s been needlessly self-created. But, there are a lot more than capable individuals inside Eskom additionally the COO Jan Oberholzer seemingly have a feeling of rationality pertaining to the future of the power company that is state-owned. In this meeting, EE publishers Chris that is’ Yelland Roger Lilly swept up with him. – Gareth van Zyl

By Chris Yelland and Roger Lilley*

A energizing openness by Eskom’s brand new administration has been demonstrated in a unique meeting with Eskom COO Mr Jan willow opinii Oberholzer by EE writers. The meeting implemented dramatic developments into the operations of Eskom in 2010, such as the decrease into the utility’s generation plant performance, shortages of coal at energy channels in Mpumalanga, the return of phase 2 (2,000 MW) load losing – with rolling blackouts in the united states for per week ahead of the Christmas time festive season, as well as the statement because of the COO of the nine-point want to deal with the functional dilemmas.

Mr Oberholzer, please are you able to explain the functions and lines of authority between your Eskom CEO, COO, CFO along with other Eskom Exco users? Whom states to who?

Eskom’s structure that is new constructed on three pillars: strategy, finance and operations. Generally speaking, CEO Phakamani Hadebe may be the face of Eskom, in charge of strategy, appropriate and business affairs, hr and reputation administration. CFO Calib Cassim is in charge of the cash, liquidity, finance, loans, treasury, opportunities, property, different help solutions and general monetary control. As COO, i will be in charge of all Eskom’s operations: generation, transmission and circulation of electricity, main power, coal and water, team money (which include new-build jobs), Rotek Industries, Eskom Enterprises, Eskom Research, Testing & Development (RT&D), risk and sustainability, amongst others. Eskom has recently ready a new exco organogram, and I also will share this to you whenever finalised.

Exactly what are the biggest dilemmas presently dealing with Eskom, which problems are you currently accountable for, and exactly exactly just just what keeps you awake through the night?

The greatest problems dealing with Eskom are: debt, liquidity and sustainability that is financial individuals problems – with individuals being our most crucial asset, ensuring sufficient coal materials, decreasing generation plant performance and accessibility – triggered by planned upkeep outages, unplanned breakdowns and plant operating with reduced production than ranked, and fast-rising municipal and Soweto arrear debt. From my place, my best issues would be the generation that is poor performance, ensuring sufficient coal materials when confronted with high export rates, and also the chance of rainfall at the moment. Although we involve some 45GW of installed generation ability at our disposal, we actually have actually lower than 30GW of available capacity – plus the country’s load is much more than 30GW. Therefore, for the time being, we have been grateful when it comes to yuletide season where demand is paid off. Concerning the individuals problems, my issues are to make sure accountability by line managers, and having the proper people who have the best mixture of abilities into the place that is right especially within generation.

Some will say the functional dilemmas at Eskom may be addressed offered adequate effort, money and time, but that the monetary and ecological problems presently dealing with Eskom are intractable. Can you concur?

Yes, i actually do concur that whenever we are diligent, and now we have the cash in addition to right individuals, we are able to resolve the functional issues – no doubt about this. But running in a world of severe monetary constraints, massive financial obligation and quickly increasing municipal as well as worldwide arear financial obligation is a huge challenge, as well as the CFO will be better positioned to comment further with this. On ecological sustainability, you will find huge problems regarding the burning of coal. Can we simply trade our way to avoid it for the situation that is current? No, we believe we shall need to do some plain things really differently to your means they are done before – structurally, economically and environmentally.

Can you think Eskom could be came back to its previous glory, or perhaps is this a backward looking pipe-dream in the basically changed and changing realm of power?

No, we usually do not think days gone by may be recaptured with Eskom retaining its form that is current as vertically incorporated monopoly. Can Eskom enhance its reputation, confidence and performance? Yes, i really believe we could, but we’ve a lot of work to do in order to accomplish that, including training and abilities development. The entire world changed somewhat since those previous times, and you can find pressures for improvement in the vitality sector. The present framework as a vertically incorporated company and solitary electricity customer may possibly not be the structure that is best and business design money for hard times, and force from industry w209
ill force Eskom to improve to match the realities that are new. Our chairman, Mr Jabu Mabuza, has already stated that the Eskom operations of generation, transmission and circulation might in the future be ring-fenced and addressed as independent devices with a small business focus, with line supervisors empowered to help make the decisions that are necessary success, and held in charge of the outcome.