State-owned power utility Eskom said on Thursday it was confident South Africa could get through the winter months without power cuts.
South Africa’s electricity grid nearly collapsed in January as Eskom battled to meet demand in Africa’s biggest economy. The country’s gold and platinum mines were shut for five days by the power crisis, sending metals prices soaring on world markets.
”I’m confident the entire winter will go without any load shedding whatsoever,” outgoing Eskom chairperson Valli Moosa said at the group’s annual results presentation.
CEO Jacob Maroga said the power system had stabilised since May but was ”not out of the woods”, adding that Eskom had a reserve margin of 6% compared with a target of 15%.
”Our number one priority is to keep the lights on,” Maroga said. ”Our second priority is to execute the big expansion strategy and secure funding.
”We are going to be borrowing a lot of money, in addition to what we have received in increased power tariffs and what the government has chipped in,” he added.
Eskom said it would borrow up to R150-billion from local and international markets for capital expansion, and had budgeted R46-billion in the 2008/09 financial year for that.
Revenue in 2007/08 rose to R44,4-billion from R40-billion the previous year, and Eskom also said its full-year electricity growth sales were at 2,9% compared with 4,9% previously.
Coal costs increased by R5-billion for the period, and the firm was currently using 21% of short-term coal contracts compared to 2% in 2001, pushing up coal costs.
Eskom has a total net generating capacity of 37 761MW from 11 operating coal-fired power stations, and a further 2 300 potentially available from two mothballed plants that are currently being recommissioned. — Reuters