Mteto Nyati.
Images of Freddy Mavunda/Gallo
- When Eskom’s COO Jan Oberholzer retires in April, he will not be replaced, an Eskom director has confirmed.
- The position will be eliminated prior to separation from Eskom.
- While the government wants to end load shedding before the end of the year, Eskom’s board is sticking to a two-year plan to boost operations.
- For more financial news, go to News24 Business Cover.
Eskom’s board plans to eliminate the chief operating officer (COO) position, director Mteto Nyati confirmed in a briefing on Thursday.
Jan Oberholzer was named the utility’s first chief operating officer in 2018. He retires in April.
The board decided to cancel the position, since Eskom will be divided into three divisions (generation, transmission and distribution).
“This COO phenomenon is (also) something new at Eskom,” said Nyati.
Oberholzer was a regular fixture at Eskom’s press conferences, but did not appear at Thursday’s event. Nyati said the board is not involved in deciding who should attend the briefings.
Following the resignation of CEO André de Ruyter in December, a company that was appointed to find a replacement will submit a long list of candidates to the board’s nominating committee within the next two weeks. Nyati, former CEO of Altron and MTN South Africa, said a short list would then be compiled.
Responding to pronouncements by ANC secretary general Fikile Mbalula that the ruling party wants to end cargo shedding by the end of 2023 by reprioritizing the national budget and declaring a national state of disaster, Nyati said the junta sticks to a two-year plan. .
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Last month, Eskom’s new board of directors confirmed a plan that aims to improve the energy availability factor (EAF) of Eskom’s coal fleet to a “desirable level” within two years.
Nyati says the Eskom board has not been pressured by the government to change its plan.
“We are open to any ideas… that will help us move the timeline forward. [But] Right now, we have a clear plan… [and] That’s a two-year plan.”
After Eskom said last year it did not have enough cash to buy diesel, which is crucial for emergency power generation, the utility confirmed it has enough to buy diesel for the next two months. The diesel is used to power two large diesel-burning open-cycle gas turbines.
Acting generation head Thomas Conradie says Eskom wants to switch from using diesel to gas to open-cycle gas turbines, which would be more economical. Over time, the units will switch from using diesel to LNG.
Conradie says open-cycle gas turbines run at a 16% load factor and kick on aggressively to meet increased demand.
Power plant managers will have more powers to reward top-performing employees with higher pay increases and promotions, Eskom’s press conference was heard.
Nyati said some Eskom employees are doing a good job, but they are treated the same way as those who aren’t trying, causing low morale at the utility.
