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New plan to force firms to save power

Cape Town - Minister of Public Enterprises Malusi Gigaba says his department is busy working on a compulsory scheme to force large companies to save electricity when the going gets tough.

It is the first high-level government commitment to such a scheme, which will serve as a defence when the electricity situation gets critical.

For some time now, Eskom has lobbied with government for such a plan.

Eskom‘s 500 biggest users are already taking part in a voluntary electricity-saving scheme as the power situation is strained.

Power supplies will remain tight until 2014 while two new coal-fired power plants, Medupi and Kusile, are being constructed.

Gigaba’s stance differs, however, from that of Energy Minister Dipua Peters.

Peters told parliament a month ago that she believes the organised business sector will keep to the pledge it made last year to voluntarily save 5 000 MW or 13% of electricity used.

Peters said in May that a compulsory scheme is problematic, because electricity savings mean lower productivity and weaker job creation.

Eskom’s total electricity generation capability is 42 500 MW. It is expected that 38 000 MW will be used in July – SA’s peak winter period. This leaves Eskom with a reserve margin of 7.5%.

To avoid power cuts, the margin has to be between 15% and 19%. During the electricity crisis in 2008, it was only 5.6%.

Gigaba stressed that no power cuts were expected.

- Sake24

For business news in Afrikaans, go to Sake24.com.
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