THE EXPLOSION at Eskom’s Medupi Unit 4 this week will cost the utility between R20 billion and R40bn and about two years of work to repair the damage, according to energy experts, however, the state parastatal says it is still ascertaining the quantum of damage.
The Eskom setback comes as the power utility for the past few years has battled to keep the lights on in the country and repeatedly plunged South Africa into blackouts that have bludgeoned the economy, costing the fiscus billions.
Eskom said: “The incident occurred during the activity to displace hydrogen with carbon dioxide and air respectively, for the purposes of finding an external leak. Fortunately, no injuries were sustained by personnel who were on site during the unfortunate incidents.”
Eskom said that following a preliminary investigation it appeared that while the activity was being performed, air was introduced into the generator when hydrogen was still present. The power utility said the hydrogen was still present in sufficient quantities to create an explosive mixture, which ignited and resulted in the explosion on Sunday night.
Energy analyst Ted Blom said the damage to the generator was extensive, which might present a difficult choice between making repairs and obtaining a new one, which he said was easily in the R50bn price range. “It may take between R20bn to R40bn depending on the option they take, as you know from the cost of building Medupi, these generators are very expensive. It may take well over a year to effectively repair the unit,” Blom said.
However, Eskom’s spokesperson, Sikonathi Mantshantsha told Business Report that there was as yet no certainty of the quantum of damage, how long it would take to fix and the amount required pending investigations which have been started. “Eskom forensic investigators working with the insurance companies are making those investigations and assessments, we do not have an answer as yet,” he said.
He said funding for the repairs would depend on the assessment of insurance investigators and if there was liability Eskom would have to pay out of pocket for.
“Everybody can speculate on the figure, but we will get the right answer from the investigations. It is true that this is huge equipment. I will not comment or commit to the figure because it is purely speculative at this stage,” he said.
Mantshantsha stressed that the utility, barring unforeseen circumstances or breakdowns at other units, would not greatly suffer the loss of the unit, especially as the grid had pulled through the peak demand of winter without extensive blackouts.
Eskom said that it had undertaken to place those employees who were responsible to manage and execute this work under precautionary suspension pending the conclusion of the major event investigation.
The utility said that investigations were under way into the cause of the incident and to what extent it would affect the national electricity grid.
Meanwhile, trade union Solidarity said it would represent its members implicated in the explosion and suspended, during the process.
Deon Reyneke, the deputy chief executive of labour relations at Solidarity, said: “We are currently compiling motivational documentation to provide reasons why our members should not be suspended. Regarding the statement that sabotage was committed, it is highly unlikely that employees would risk their jobs and especially their lives to cause an explosion.
“It is a pity that there is financial damage, and of course damage to the power plant, but Eskom must not lose sight of the fact that human error is a reality when tasks are physically done by hand. We trust and believe that the investigation will prove the innocence of our members.”
BUSINESS REPORT