Publications
Partners
Cape Town - Eskom's instruction to large industrial consumers that they have to cut 10 % of their power, could cost South Africa R7bn, reported Die Burger.
The government, however, says the cost of doing nothing could be considerably larger.
Economist Mike Schüssler of Economists.co.za says load shedding has cost the economy between 1 % to 2 % of gross domestic product (GDP) in the first quarter of 2008.
Schüssler said the latest developments are not on the same level as the national load shedding in 2008.
"This time it is also happening much later in the year when many factories are not as busy, but I guess the major manufacturers who now need to cut 10 %, could take between 0.1% and 0.2% from GDP," said Schüssler.
"1 % of GDP about R35bn, so the latest actions have an impact of up to R7bn."
Mayihlome Tshwete, spokesperson of the Minister of Public Enterprises, said the cost implications of doing nothing could be much worse.
"If the country's power networks collapse, it will make the amounts economists now mention look like small change. Eskom is, therefore, taking precautions now."
Tshwete said Eskom is doing intensive maintenance in preparation for winter 2014.
"Unfortunately there are some of the other units which trip and now Eskom is struggling with unplanned maintenance. It's like building a roof when it rains."
Mike Rossouw, a spokesperson for the Energy Intensive User Group, representing approximately 44% of the country's electricity consumption, is unhappy.
He said the group wants to know what other consumers are doing to save power.
At present, only these big consumers have been ordered by Eskom to save power.
"What about municipalities and ordinary consumers? We have asked what other entities are doing and we are still waiting for an answer," said Rossouw.
Most of Eskom's power plants are older than 25 years and some even older than 40 years. These old power stations cannot deliver their full capacity energy anymore.
Eskom said power plants are designed to deliver up to 85% of their capacity. At present they produce less than 80% of their capacity .
* For news in Afrikaans, see Die Burger.
The government, however, says the cost of doing nothing could be considerably larger.
Economist Mike Schüssler of Economists.co.za says load shedding has cost the economy between 1 % to 2 % of gross domestic product (GDP) in the first quarter of 2008.
Schüssler said the latest developments are not on the same level as the national load shedding in 2008.
"This time it is also happening much later in the year when many factories are not as busy, but I guess the major manufacturers who now need to cut 10 %, could take between 0.1% and 0.2% from GDP," said Schüssler.
"1 % of GDP about R35bn, so the latest actions have an impact of up to R7bn."
Mayihlome Tshwete, spokesperson of the Minister of Public Enterprises, said the cost implications of doing nothing could be much worse.
"If the country's power networks collapse, it will make the amounts economists now mention look like small change. Eskom is, therefore, taking precautions now."
Tshwete said Eskom is doing intensive maintenance in preparation for winter 2014.
"Unfortunately there are some of the other units which trip and now Eskom is struggling with unplanned maintenance. It's like building a roof when it rains."
Mike Rossouw, a spokesperson for the Energy Intensive User Group, representing approximately 44% of the country's electricity consumption, is unhappy.
He said the group wants to know what other consumers are doing to save power.
At present, only these big consumers have been ordered by Eskom to save power.
"What about municipalities and ordinary consumers? We have asked what other entities are doing and we are still waiting for an answer," said Rossouw.
Most of Eskom's power plants are older than 25 years and some even older than 40 years. These old power stations cannot deliver their full capacity energy anymore.
Eskom said power plants are designed to deliver up to 85% of their capacity. At present they produce less than 80% of their capacity .
* For news in Afrikaans, see Die Burger.
