Eskom – Oracle

Media statement by Eskom was made on 5 April 2021.   Eskom confirmed it is involved in a contractual dispute with the South African arm of Oracle Corporation, which is contracted to provide a number of technical services to Eskom. Oracle first claimed it had been underpaid by an amount of approximately R7.3 billion, which underpayment is disputed by Eskom.    Eventually, the amount claimed by Oracle was reduced to just under R400 million. As far as Eskom is concerned, the amount due to Oracle is approximately R166 million in total.

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(media statement)

Eskom offered to settle the R166 million, and proposed a verification and court process in order to legally and sustainably resolve the dispute. When Oracle rejected this approach, threatening to terminate its services to Eskom, Eskom approached the high court to compel Oracle in essence to continue providing the technical support services for the duration of the agreement until April 2022.

Last week the court dismissed the application. It is the intention of Eskom to launch an application for leave to appeal.    As far as the technical support services are concerned, Eskom have assessed the risks in the event of Oracle withdrawing technical services support. Eskom has interim risk mitigating processes in place to reduce the risk of its operations being disrupted.    Eskom finds regrettable the manner in which Oracle has handled the matter, and would like to assure the people of South Africa that as an entity dealing with public funds, Eskom will pursue all legal avenues and will not be bullied into paying any monies outside of the legal processes.

https://www.eskom.co.za/news/Pages/2021Apr6.aspx

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Other articles

Eskom loses a court battle to stop US-based software giant Oracle from withdrawing its crucial services over a dispute relating to billions of rands owed by the power utility.   The Sunday World reported that South Africa is now at the mercy of Oracle to save it from plunging into darkness and keep the lights on.

Eskom failed to convince the Johannesburg High Court to stop Oracle from withdrawing its crucial services.   Oracle provides an online vending system that records 77 million transactions of electricity a month.

The embattled power utility also uses Oracle’s products and services for load monitoring of electricity generation by power stations.   Eskom also uses Maximo, a maintenance tool used for asset management and power outages,. logging of faults and control of electricity grids, which allows areas to be switched off.   Maximo also enables Eskom to distribute electricity in prepaid areas, collect revenue and detects and records faults in the distribution system.

Gaurav Bhatnagar, Oracle spokesperson, did not answer Sunday World’s questions on whether the company will follow through on its threats to withdraw its services, saying the court had dismissed Eskom’s urgent interdict application.

US Firm Oracle Pulls Plug on Eskom

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https://gambakwe.com/2021/04/05/eskom-slams-oracle-will-not-pay-r600-million/

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Eyewitness news reported about the Eskom’s fallout with computer technology company Oracle threatened the livelihoods of many South Africans.   Eskom’s found itself in a contractual dispute with the South African arm of Oracle.     The company claimed that it had been underpaid by around R7.3 billion. Eskom denied this, saying that the amount was R166 million.

The firm provides various technical support services that include the Maximo maintenance software for planned maintenance in power stations, online vending systems and some accounts and billing systems, among others.

https://ewn.co.za/2021/04/07/eskom-oracle-fallout-threatens-livelihoods-energy-expert

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Oracle claims it is owed money by the utility, initially R7.3 billion, but reduced to ‘just under R400 million’. However, Eskom claims the amount owed is even less.

https://citizen.co.za/business/business-news/2469075/end-of-eskom-expert-says-power-utility-is-lying-about-oracle-plan-b/

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Eskom’s rights and Oracle contract (March 2022)

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Eskom is hoping to recover R10-billion from customers with its 15.6% tariff hike. With an economy in the doldrums and rising food and fuel costs, this latest blow by Eskom could not come at a worse time for consumers.

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Dit kom eerder voor dat beide Eskom en Oracle misbruik hul magsposisies om die huishoudings en betalers met hul verskille by te kom.   Dis nie die gebruikers wat aan die kortste end moet trek of moet opdok of in donkerte moet sit nie.

Met al die krag onderbrekings is daar baie wat verlore gaan en toerusting wat breek, ekstra onkostes uit die huishouding se sak uit en beide weet dit.

Beide partye het fisiese kontrakte met mekaar, wat nie een dan nagekom het nie, veral in die lig gesien dat die bedrae so verskil.   Doen Eskom en Oracle dan nie maandelikse en jaarlikse oudits nie – duidelik nie, anders sou daar nie verskille ontstaan het nie.

Hierdie is alles moedswillige en kwaadwillige aanslae teenoor besighede en huishoudings,

Daar is honderde duisende huishoudings (miljoene) wat voorafbetaalde elektrisiteit gebruik.   Dus is die elektrisiteit reeds betaal.   Met kragonderbrekings verloor elkeen van ons gebruikers, veel meer as net ‘n donker kamer en huis.

Daar is onbeantwoorde vrae.

Hoe lank neem dit om R7.3 biljoen onderbetaal te word soos wat Oracle beweer, maar Eskom reken dit is net R166 miljoen.   In ander berigte en beeldmateriaal beweer Oracle hul bedrag is na R400 miljoen verminder en weer is daar ‘n verskil.   Verdag is nie die woord nie, maar eerder korrupsie.

Duidelik gee sommige nie om wie speel kat en muis in die een sak met alle pligsgetroue Suid-Afrikaanse besighede en burgers nie.   Wat is die alternatiewe opsies vir ons as gebruikers, want almal wag in spanning hoekom die bedrae verskil en so hoog is.    R1 miljoen is baie geld, maar R166 miljoen is veel meer en R7.3 biljoen is veel erger, dit is ‘n ramp.   Eskom reken hul het reeds ‘n noodplan in aksie sou Oracle alles afsit maar stel dadelik weer kragonderbrekings in en verhoog tariewe.

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