1983 to 1993

Eskom’s seventh decade “Electricity for all” 1983 - 1993 ESCOM’s seventh decade In the early 1980s, ESCOM planners Vaal Dam to the Grootdraai Dam. The Commission, the Electricity Council was Restructuring ESCOM along business electrification process that hit full was one of its most were predicting electricity demand to emergency plan (a joint effort between responsible for policy and planning, while lines was (and still is) no simple matter. steam in 1992 when it made 145 000 grow by 7 to 8% a year. At that rate, ESCOM and the Department of Water the Management Board was responsible The answer back in the mid-1980s connections (219 000 if you include momentous. While the thanks to the nature of compounded Affairs) worked, and disaster was for running ESCOM’s “day-to-day affairs was to create “strategic business the efforts of the municipalities). In country underwent massive growth, you have to double capacity averted. In October of 1983, heavy rains on sound business principles and within units” (SBUs) and separate them 1987, Eskom had adopted a policy that political and social every decade or so. To meet the fell throughout the country and broke the guidelines, policy, and objectives into three distinct categories: cost allowed it to use price incentives to expected demand, ESCOM started the drought. determined by the council” (Symphony centres, profit centres, and profitability attract new sales. change, ESCOM itself plans on three large power stations: But still the heat remained on of Power, pg 249). centres. ESCOM’s transformation to a The policy encouraged energy- was transforming, too. In Matimba, Kendal, and Majuba. ESCOM. The De Villiers Commission was As a major borrower of overseas business took another leap in 1986 intensive industries to flourish, most fact, ESCOM’s leadership Even though things were slowing investigating matters relating to costs, capital, ESCOM was now under pressure when legislation was introduced significantly in the ferro-alloy and seemed to anticipate the down in the early 1980s, ESCOM’s planning, and plant performance. In to reduce expenditure. to scrap the “no profit, no loss” aluminium sectors. Out of this new chairperson of the time, Jan H late 1984, the government announced Maree put his much-vaunted principle. In 1987, the Electricity Act market-driven policy came the idea direction the country was Smith, saw it as temporary and so that it had received, and accepted, the communication skills to work by going was revised, and a new “Eskom Act” to develop sub-brands to promote taking and made a very carried on full steam ahead with recommendations of the De Villiers around the country and speaking to was published. ESCOM (EVKOM in electricity use in various fields. Agrelek serious attempt to be part building large power stations. Commission. ESCOM was to be run by a small groups of ESCOM managers. Afrikaans) was renamed Eskom, and helped farmers switch to electricity; In 1983, matters reached a low two-tier structure, consisting of a board He made it his business to change the accounting practices were brought Industrelek focused on industrial of that change – in effect, point for ESCOM. Its power stations of control and a management board. It public’s perception of ESCOM. He made in line with standards. applications; Elektro Wise promoted the to change things from were running at an average availability also revisited that old ESCOM chestnut, Ian McRae Chief Executive, and together, In April 1984, the first unit of safe use of electricity in townships and the inside. of 72%, and interruptions in supply “profit”. The commission recommended the two (dubbed I&J by some) formed Koeberg was synchronised onto the grid, squatter camps; and Elektro Serve was were commonplace. In May 1983, the that ESCOM recover, in revenue, 5% a formidable tag team intent on turning and then Unit 2 followed suit in 1985. dedicated to the service and hospitality government appointed a Commission more than expected expenditure. ESCOM’s fortunes around. Koeberg boasts the largest turbine industries. UtiliMark targeted bulk of Inquiry (the De Villiers Commission) It recommended that the idea of When Maree took over, there were generators in the southern hemisphere retailers, including municipalities. into “The Supply of Electricity in the undertakings be done away with and 66 000 of them, and management had and is also the southern-most nuclear In 1990, Eskom could claim a fair Republic of South Africa”. In 1983, that tariffs had to be more projected an increase to 72 000. Maree power station in the world. bit of success in improving its South Africa was in the grip of a major differentiated and cost-reflective. had a hunch (backed up by evidence, Another Eskom giant, Tutuka power reputation and making itself relevant drought. Power stations are thirsty In line with the recommendations, no doubt) that ESCOM would be no station (near Standerton) came on line and appreciated by the South African animals, and at the time, a unit of the Cabinet announced the establishment less efficient with fewer people. By the in 1985 and was fully operational in public. In a publication from that year electricity used about two-and-a-half of a board of control, which was to end of 1986, he had reduced the staff 1990. The Palmiet pumped-storage (Five Years On), it boasted that, since litres of water. The KwaZulu-Natal be known as the Electricity Council. It complement to 60 800; and by the early scheme, a peaking generation power 1985, it had achieved a 32% rise in power stations were affected, as were consisted of 15 people and included 1990s, it was down to 50 000. station, was a joint venture between electricity sales, a 20% improvement those that relied on the Vaal Dam. government bureaucrats, independent An Equal Opportunity Committee Eskom and the Department of Water in productivity per employee, and Of particular concern was the experts, and representatives of consumer was established in 1986 to “investigate Affairs. In 1990, it added 400 MW to a 15% decline in the real price of level of the Grootdraai Dam, organisations. The Electricity Council and remove discrimination” (Eskom the grid, as well as water to the City electricity, among others In February which supplied water to Kriel would see to it that the recommendations publication: “Five Years On”). ESCOM of Cape Town. 1990, Nelson Mandela’s long walk to and Matla power stations. To of the De Villiers Commission were enacted. committed itself to the education In 1987, only 40% of the population freedom entered the final bend and get water to Grootdraai, an In 1985, John Maree took over and training of black entrants to the (fewer than 13 million people) had with a new South Africa emerging, emergency plan was hatched as the chairperson of the newly workforce and accepted the challenge of access to electricity, and the vast the organisation would face new to pump water 200 km back created Electricity Council. As per the substantially increasing the number of majority of black people were without challenges, as well as a somewhat up the Vaal River from the recommendations of the De Villiers black managers power. So Eskom embarked on an expanded mandate. • 1983 to Majuba power station (begun Jan H Smith In 1986, Eskom’s chairperson at the time, Dr JB 1993 in 1983) is ESCOM’s only power (ESCOM chairperson Maree, reduced Eskom’s staff complement from station that is not linked to a from 1980 to 1985) 66 000 to 60 000. In 1990, it was down to 50 000. specific mine, but receives its was nicknamed > > coal from various sources. “Mr Kilowatt-hour” In 1986, Matla because of his power station set an DID YOU KNOW? accident-free world In 1985, ESCOM uncanny ability to record of 11 847 was the sixth largest reduce a difficult problem to the cost 026 man-hours – it power utility in the stands to this day. world. Today, it is the effect it had on a 11th largest in terms kilowatt-hour of > of generating capacity electricity. In 1989, black Eskom Eskom published its first employees were and the 9th in terms dictionary, Eskom of sales. debarred from woordeboek vir receiving housing loans. Kragontwikkeling en From 1981 to 1986, Verspreiding/Eskom ESCOM experienced Dictionary for Power By 1989, about 70% In 1985, ESCOM had a total an 85% increase in Generation and of Eskom’s employees installed capacity of 25 716 MW. the cost of fuels. Distribution, in 1987. belonged to a union..

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