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South Africa: Up to R4.32 Billion Will Be Spent On Diesel to Keep the Lights On Until the End of 2019

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Eskom plans to spend up to R4.32-billion on diesel for gas turbines to keep the electricity supply on until December -- and more after that. Yes, it is the worst-case scenario, but given the power utility's reliability track record, a real possibility.

It's only by April 2020 that Eskom expects to ditch the need for diesel to run its open cycle gas turbines to supplement electricity supplies, according to a system outlook document seen by Daily Maverick.

Until then those gas turbines make the difference between load shedding and keeping the lights on, and the economy limping along, at a cost of between R4.32-billion and, at best, R608.5-million until 31 December 2019. Anything from R47.13-million in the best-case scenario to R1,07-billion in the worst would be needed for diesel to keep these gas turbines going between January to April 2020.

And that means Eskom, which is R450-billion in debt, continues to hold South Africa to ransom -- despite already having received R23-billion additional funding for 2019 in February's Budget, and with another R26-billion available once Parliament passes the Special Appropriation Bill that Finance Minister Tito Mboweni introduced in the House on 23 July.

However, on Tuesday both Eskom and the...

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