/ 15 August 2006

Eskom found guilty of negligence

A probe by the National Energy Regulator of South Africa (Nersa) into the recent power outages in the Western Cape has found electricity provider Eskom guilty of transgressing its licensing conditions as well as negligence.

As a consequence, the regulator said it will impose punitive sanctions against Eskom, although it did commend the power utility for developing a detailed a comprehensive Western Cape recovery plan.

The task team appointed by Nersa to investigate the power outages found that in an incident on November 11 2005 at Koeberg power station and substation there had been negligence on the part of the responsible people. Maintenance procedures were also inadequate and the licence conditions stipulated in the grid code were breached.

Pertaining to an incident on November 12 2005 on the Beta-Hydra line and Koeberg power station, the probe found that commissioning and/or maintenance procedures were inadequate and that the protection system operated incorrectly.

With regards to an incident on November 16 2005 on the Droerivier-Muldersvlei line and Koeberg power station, the investigation found that the licence conditions were breached and the implementation of remedial and/or corrective actions was not adequate.

In the case of an incident that occurred from November 23 to 26 2005 at Koeberg power station, the investigation established that there was negligence on the part of the responsible Eskom personnel and that the operating risks-assessment process was inadequate.

”The events described above indicate that there were deficiencies in some of the configuration management system, commissioning procedures and maintenances practices or policies. There was also a trend that indicated ill-discipline in certain areas and non-conformance to procedures. The coordination of the protection system required close monitoring and calculated risks or trade-offs,” Nersa said in a statement on Tuesday.

The probe did not cover a shutdown at Koeberg power station on December 25 2005 — which was apparently caused by a bolt left in the rotor and stator mechanisms — as this incident was investigated by another state agency.

Regarding the punitive measures, Nersa said that in terms of the Electricity Act of 1987, the regulator may lay a criminal charge against Eskom, and if found guilty of an offence, will be liable on conviction to a fine not exceeding R500 for the first conviction.

”The Electricity Regulation Act of 2006, which became operational with effect from August 1 2006 provides that in the event that a licensee is found guilty by the energy regulator sitting as a tribunal, the tribunal may impose a fine of 10% of the annual turnover or R2-million per day, whichever is the higher. However, since this Act was operationalised after the incident Eskom could be liable for a fine of R500 if found guilt by a court of law,” it said.

It added that the Multi-Year Price Determination (MYPD) allows the energy regulator to clawback certain amounts that were allowed to Eskom with respect to their capital and operational expenditure.

”The regulator is evaluating those areas where it can apply the clawback mechanism as a punitive and corrective measure, which can be up to about R300-million.

”The MYPD mechanism also allows incentives and penalties relating to the security and continuity of supply,” Nersa added. ”For the first year there is an amount of R10-million, which will be used to encourage security of supply and continuity.”

Outcry

Meanwhile, the Democratic Alliance on Monday called on Minister of Public Enterprises Alec Erwin to ”apologise publicly” for misleading the South African public about sabotage at Koeberg power station.

Erwin caused an outcry when he went on record blaming sabotage for the outages. He said a loose bolt was found in the generator. He later withdrew the statement and said he would not become involved in a ”semantic debate” over the cause of the damage to the Koeberg power station.

Minerals and Energy spokesperson Hendrik Schmidt said in a statement on Monday that this week he would introduce a motion in Parliament to censure Erwin ”for this gross lack of discretion”.

Erwin is scheduled to address the National Assembly on Thursday afternoon on the bolt that damaged the Koeberg nuclear power station in December last year.

The Independent Democrats, through MP Lance Greyling, the party’s energy spokesman, echoed the DA’s call for Erwin to apologise.

Erwin made the statement before the municipal poll in March. — I-Net Bridge and Sapa