South Africa’s future growth could be severely compromised by the country’s lack of sufficient power capacity, the Democratic Alliance (DA) said on Thursday.
DA spokesperson Hendrik Schmidt said: ”South Africa’s lack of reserve power capacity has now reached catastrophic proportions and if left unchecked threatens to fundamentally undermine South Africa’s future growth prospects.”
Schmidt said Eskom’s appeal to the government for a moratorium on large-scale industrial projects until 2013 indicated the extent of the problem.
”Such a moratorium could derail a number of huge projects, such as BHP Billiton’s expansion of two aluminium smelters in Richards Bay.
”Our economy simply cannot afford to chase away investment of this size as it not only undermines our growth potential but also stymies the much-needed ability to create jobs.”
Schmidt said it was also questionable whether Eskom had the ability to finance the promised new power stations because of its credit rating being downgraded.
Only government intervention could help with the power situation, said Schmidt.
He said the government needed to explain how it would help assist Eskom to raise the necessary finance to build the promise power stations.
Short-term solutions also needed to be sought.
”These include exploring the viability of bringing gas turbines on stream, as well as providing tax rebates to consumers who use solar power to power their hot-water geysers.”
Schmidt said the government also needed to explore whether South Africa could continue providing power to neighbouring states when there was a deficit in the domestic market.
”The electricity crisis can potentially bring this country to a halt if left unchecked.
”The ball is now firmly in the government’s court; they must tell us how they will ensure that the lights stay on in South Africa.”
Earlier on Thursday, the Tshwane municipality said load shedding would continue.
”Once again, load shedding is due to Eskom generation constraints,” said municipal spokesperson Console Tleane.
He said there was a slim chance that load shedding would not be as ”intense” on Friday.
On Thursday, the Tlokwe City Council denied claims that it was responsible for power cuts in Potchefstroom.
”We view the allegations that we scheduled load shedding for the city as malicious, irresponsible and silly — due to the fact that as the municipality we have no control over the load shedding, as is the case with other municipalities in the country,” said spokesperson Kaizer Mohau.
”No municipality will accept and condone this load shedding, especially when it does damage to business and affects in a negative way our smooth service delivery,” he said. — Sapa