Answer to Question #202393 in Management for nhlaphu

Question

ESKOM'S(SOE) SUPPLIER PROBLEMS

1. Why should electricity generation plants (Eskom) keep more stock rather than less stock?10 marks

Answer 1

Reasons why Eskom keeps more stock

• Costs must be cut, but in a way that assures that the skills need to be preserved.
•  Even with major cost reductions, power prices rise to recover Generation performance levels.
• The highest level of maintenance must be carried out, even if it necessitates load shedding.
• The new Medupi and Kusile units are not working as intended, owing to design flaws that must be remedied.
• All efforts and targets that do not directly contribute to the aforementioned factors are put on hold until Eskom can be sustained.