SA power problems loom

Johannesburg - South Africans can expect renewed power supply problems from 2011.

Erica Johnson, head of customer relations at Eskom, says the utility does not anticipate problems with power supply for the next 12 months.

But from 2011 and 2012 onwards capacity would not meet demand, she warned.

Eskom indicated on Tuesday that it wants to sell 30% of one of its new power stations for R40bn.

The Kusile power station near Delmas in Mpumalanga will cost R142bn, according to recent indications.

But the project has already been delayed by a year because of Eskom's inability to raise sufficient finance in time.

On Tuesday Eskom's acting chairperson, Mpho Makwana, said that the utility could no longer carry the sole responsibility for South Africa's power into the future.

This means, he said, that Eskom needed to make a significant shift in its business strategy. Part of this strategy was the possibility of equity injections from the private sector.

Makwana said Eskom hoped to sell a 30% stake in Kusile within 24 months.

Last year the power utility indicated that it no longer wanted the responsibility for nuclear power, and handed this task back to government.

On Tuesday Eskom also suggested that government delay its decision on a new nuclear facility by another two years.

Furthermore, Makwana said, Eskom would not be building the next coal-fired power station previously planned.

It would also no longer carry the responsibility for repairing and maintaining roads.

Trucks transporting coal to Eskom's power stations cause huge damage to the roads.

In its original tariff application Eskom indicated that it wanted to finance the repairing of roads through the power tariffs.

Eskom now says that this role must be left to the relevant governments or provincial departments.

- Sake24.com

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