Share

SA may have a dark winter - Eskom

Johannesburg - Eskom said it was prepared to introduce rolling blackouts this winter in some parts of the grid to prevent a complete system collapse, which would inflict far greater damage on the economy.

Chief executive Brian Dames said Eskom could not rule out 'load shedding', as scheduled power outages are known in South Africa, as the utility wrestles with soaring demand in the southern hemisphere winter against limited supply.

"We will take whatever measures we need. It means if we get close, we will drop the load. We will drop the customers and protect the country," Dames told a news conference on Monday, adding he would work to avoid system-wide problems "at all costs".

Eskom, which provides 95% of the country's power, has been walking a tightrope for five years as it tries to bring long overdue new power plants online after the system was brought close to collapse in 2008.

Power crisis

The power crisis forced factories, mines and smelters to shut down for days, costing the economy billions of dollars in lost output.

Already this year, the grid has sometimes operated with a buffer of only 1% of its capacity.

The system will be under greater strain in the 2013 winter a year ago, because a massive maintenance backlog on Eskom's ageing power stations has forced the utility to continue repair work beyond the summer.

"We have reached a point where we cannot defer planned maintenance on the fleet," Dames said.

Medupi

Eskom's hopes rest on the completion of the massive Medupi power plant by the end of this year, but construction of the coal-fired power station - the first to be built in more than 20 years - has been beset by delays.

The plant, north of Johannesburg, is already running at least a year behind schedule, and building work has been plagued by strikes.

Kusile

Construction of a second coal-fired power station, Kusile, was also disrupted by an illegal strike this month. Kusile is due to come on line next year, and the government has made clear it will tolerate no more disruptions.

"We are tolerating no delays and penalising failure," Public Enterprises Minister Malusi Gigaba said in the same news conference.

When both plants are fully built, Medupi and Kusile will add 9 600 megawatts to the grid's current 43 000MW capacity.

The construction programme is part of a R350bn plan to ensure South Africa has enough power to underpin an economy growing at 3% a year - a rate the government wants to see rise to 5% or more.

Tariffs

To raise funds for the programme, Eskom has had to increase tariffs way in excess of inflation over the last three years.

This year, however, the energy regulator granted Eskom a raise of only 8% - half what it wanted - casting a shadow over its long-term funding plans.

"The implications of the lower tariffs and revenue approved on Eskom's operations and overall business sustainability are currently being investigated," Gigaba said.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.81
+1.1%
Rand - Pound
23.51
+1.2%
Rand - Euro
20.12
+1.4%
Rand - Aus dollar
12.29
+0.9%
Rand - Yen
0.12
+2.4%
Platinum
922.90
-0.3%
Palladium
961.50
-2.9%
Gold
2,340.13
+0.3%
Silver
27.31
-0.5%
Brent Crude
89.01
+1.1%
Top 40
69,358
+1.3%
All Share
75,371
+1.4%
Resource 10
62,363
+0.4%
Industrial 25
103,903
+1.3%
Financial 15
16,161
+2.3%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders