PARLIAMENTARY COMMITTEE RAISES CONCERNS OVER KUSILE POWER STATION’S COST OVERRUNS AND ENVIRONMENTAL IMPACT

Kusile, Mpumalanga – The Portfolio Committee on Electricity and Energy has conducted an oversight visit to the Kusile Power Station, addressing critical concerns regarding cost overruns, operational efficiency, and environmental sustainability.

ESCALATING COSTS AND FINANCIAL ACCOUNTABILITY

The committee expressed deep concern over the alarming cost overruns associated with the construction of Kusile. Initially projected at R80 billion, the total cost has now escalated to nearly R161 billion. This financial strain on Eskom has raised serious questions regarding financial mismanagement, procurement processes, and contractor performance.

Committee members called for a thorough investigation into the causes of these overruns and urged Eskom to enforce stricter accountability measures. They emphasized the need for transparency in addressing financial inefficiencies and stressed that those responsible for mismanagement must be held accountable.

OPERATIONAL EFFICIENCY AND ENERGY CONTRIBUTION

While Kusile currently operates at an energy availability factor (EAF) of 74%, this figure remains below the industry standard of 80%. The committee acknowledged recent improvements but urged Eskom to implement strategic plans to enhance the plant’s reliability and contribution to the national energy grid. Members stressed that increasing operational efficiency is essential to mitigating the ongoing energy crisis in South Africa.

ENVIRONMENTAL IMPACT AND EMISSIONS CONTROL

Environmental concerns were also a key focus of the visit. The committee raised questions about the impact of coal-fired emissions on local communities and urged Kusile’s management to accelerate the implementation of advanced emission-reducing technologies. Kusile’s management outlined their commitment to reducing sulphur dioxide emissions through flue gas desulfurisation systems and other clean coal technologies.

Committee members encouraged continued investment in research and development to enhance environmentally sustainable practices while maintaining the plant’s operational efficiency.

UNOCCUPIED WORKER HOUSING AND PROJECT DELAYS

The oversight visit also addressed concerns regarding a residential apartment project intended for construction workers. Initiated in 2008, the R800 million housing project remains incomplete and unoccupied, prompting committee members to question its viability and the decision-making process behind it.

The committee sought clarity on whether those responsible for the project’s delays and failures have been held accountable. It urged Eskom to explore legal avenues to recover costs associated with the abandoned development and emphasized that future infrastructure projects should include community input and serve local housing needs more effectively.

CALL FOR TRANSPARENCY AND OVERSIGHT

In concluding the visit, the committee reaffirmed the importance of accountability in restoring public trust in Eskom and the country’s energy sector. Members stressed that transparency in financial reporting, procurement, and operational decisions is crucial for ensuring Kusile’s long-term success.

The Portfolio Committee on Electricity and Energy will continue its oversight efforts to ensure that Eskom addresses the issues raised and works towards a more efficient, cost-effective, and environmentally responsible energy future for South Africa.