Eskom warns of possible load shedding

Eskom says although there are no immediate plans to reintroduce rostered power cuts, the risk that it will happen is high as the "system is tight".

The risk of load shedding over the next few weeks is high as electricity demand continues to outstrip supply, power utility Eskom warned yesterday.

SA has been struggling for years to meet electricity demand.

In 2008, Eskom faced critical infrastructure and coal supply problems and resorted to load shedding, which cost the economy about R50bn.

While energy supply is usually affected in December and January by planned maintenance, business is concerned there may be another reason for the new power threat.

Eskom spokeswoman Hilary Joffe said yesterday although there were no immediate plans to reintroduce rostered power cuts, the risk that it would happen was high as the "system is tight".

"The risk is high, we have said before that 2012 would be a difficult year. There is too much demand and not that much supply…. We are also experiencing a lot of (technical) issues at our power stations … supply is very constrained."

Ms Joffe said there were measures in place to try to avoid load shedding. "We have arrangements with aluminium smelters to switch off when demand is high … we are also working with large companies on voluntary reduction.

"We are really urging people to switch off (electrical appliances) where possible and reduce consumption. The determination is not to resort to load shedding."

Cape Chamber of Commerce president Michael Bagraim said yesterday that load shedding would negatively affect the government’s drive to create jobs.

"I have heard of at least one major mining operation that is unable to expand in this country due to a lack of power security and has now opted to invest heavily elsewhere," Mr Bagraim said.

"Those jobs, that revenue, that contribution to our gross domestic product is gone. Government keeps demanding that business increase jobs. But how can we, when we are not in a position to operate our businesses in the first place?"

Mr Bagraim said the Cape Chamber of Commerce was told yesterday that there was the "possibility" of load shedding in various parts of the country that could last throughout next month.

"While we appreciate the fact that they contacted us so we could alert our members, we are not at all happy with the lack of granular information available," he said. Mr Bagraim said Eskom was unable to say why the load shedding was necessary, other than its inability to meet demand.

Nor, he said, was Eskom able to give any indication as to what its management was doing to resolve the problem, or what measures were being put in place to remedy the situation in future.

Mr Bagraim said even if load shedding did not materialise, "the fact that we are facing such an uncertain future calls for action. Let’s all pitch in where we can."

Democratic Alliance energy spokesman Sej Motau said yesterday the best short-term measure to avoid load shedding was to conserve "as much power as possible".

"Load shedding would mean that most businesses would not be able to plan and expand, and thus they would not be in a position to employ," Mr Motau said.

Eskom hopes to ease the pressure on the country’s grid with the introduction of two new power plants, Kusile and Medupi. Last year Eskom CEO Brian Dames told Parliament the utility was worried Medupi may not be operational by the end of this year as scheduled — chiefly because of delays in the boiler contract.

However, Mr Dames reassured MPs that the Kusile plant was on track to be operating by the end of 2014.

Ms Joffe said yesterday revised dates for the Medupi plant would see the first unit going online by the first half of next year.

http://www.businessday.co.za/articles/Content.aspx?id=162227