/ 4 March 2008

Power rationing on the cards for SA

Power rationing was an option under scrutiny to minimise the impact of power cuts on South African mines, the Minerals and Energy Affairs Department said on Tuesday.

Deputy director general Nelly Magubane said Trade and Industry Minister Buyelwa Sonjica last week met representatives of the sector to discuss their current level of electricity consumption and their consumption targets.

Mining companies were forced to cease operations for five days in January due to the shortage of electricity supply.

Eskom had then asked its large industrial clients, including mines, to reduce their consumption by 10%.

At the meeting, mining companies submitted their increased consumption requirements to the minister, who agreed to investigate the feasibility of increasing their supply.

One of these options were power rationing, Magubane said.

”What we are looking at are various options … we are saying that one of the things that need to happen now is power rationing,” she said.

This option would be explored with companies first and eventually, households.

”We can’t ration households yet due to the metering systems. We are looking at various classes of customers. Eventually households would be included.”

According to media reports, Sonjica on Friday said job cuts in the sector were ”inevitable” due to the power crisis.

Magubane said the minister’s statement was ”taken out of context”.

”On job losses, they agreed that they are going to hold a moratorium on job losses. Government and the mining industry are going to work hard to make sure job losses don’t occur,” she said.

The Congress of South African Trade Unions (Cosatu) said it would embark on a massive sympathy strike with its affiliates in the mining sector should job losses due to power problems occur.

The outcome of the process reviewing the feasibility of increasing supply to the mines while maintaining the stability of the system would be outlined to the industry on March 7.

Magubane said the criteria to be used by the department in the review process was job losses, the socio-economic impact and safety risks. – Sapa