Energy expert welcomes Treasury's refreshing take on energy crisis

By Doug Mattushek - 30 August 2019Views : 601


An independent energy expert has welcomed the National Treasury's new outlook on the Eskom crisis.

Earlier this week, the Treasury released a paper titled "Economic transformation, inclusive growth, and competitiveness: towards an economic strategy for South Africa" which outlined some fresh proposals to deal with the energy crisis.

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These included allowing households and businesses to feed back excess power to the grid and attracting investors to Eskom by selling the existing power plants.

Ted Bloem, an independent energy expert, welcomes the new ideas.

"It seems to me they have quite an open mind as to what the alternatives are [for Eskom], including mentioning households selling power to the grid as well as recognising municipal revenue dilemmas," he told Business Insider.

However, Blom did poke holes in the Treasury's predicted value of it's power stations.

"The paper makes a whole lot of assumptions," he continued.

"To value an old, stuffed-up fleet, which is only half working, at R450 billion is preposterous...it's not even worth half of that.

"Even if you look at Eskom's average profitability over the years that it made profit, it would take 100 years to return that money to the pensioners."