Energy crisis

Eskom urges more power cuts
02/04/2008 14:11 - (SA)

Crisis 'won't stop power plans' Eskom to decide on power cuts Expect power cuts 3x a week Eskom turns down power request Miners make a plan on Eskom

Johannesburg - South Africa's power crisis may last many years unless there is a drop in demand for electricity, Eskom said on Wednesday.

A reduction in consumption should not damage the economy, it added.

Eskom is rationing power to households and reduced supply to big industrial customers from January after the energy grid came close to collapse.

The country's key mining sector, which includes the world's biggest platinum mines, is operating at 95% power supply.

Eskom CEO Jacob Maroga said South Africans could not only rely on efforts to boost capacity, and had to find ways to cut demand.

"If we only rely on (an increase in supply), the numbers are not looking good for many years," he told reporters, adding that reducing demand would not damage economic growth.

"Reducing energy consumption should not slow down the GDP growth."

However, the utility would welcome delays of major energy-intensive projects and developments, including smelters.

Maroga also said the company was in talks with mining companies on proposed electricity price increases, after it requested that the energy regulator approve a 53% tariff increase this year.

The proposed price hike, aimed to help finance spending of R343bn over the next five years to boost capacity, has been widely criticised and could add significantly to costs in a mining sector that has already been forced to lower output due to power constraints.

"We may have to raise our appetite for price," Maroga said, without giving further details on the talks with the mining sector, one of the cornerstones of the economy.

Power stations had about 12 days stockpiles of coal, he added. A shortage of coal, and ageing infrastructure at the company's power plants, has been a major cause of unplanned blackouts, leading to a scramble to secure more supplies.