Japanese engineering and heavy machinery maker Mitsubishi Heavy Industries is reportedly considering a ¥10-billion (R746,5-million) investment in South Africa’s Pebble Bed Modular Reactor (PBMR). The investment would buy the Japanese company a stake of about 10% in PBMR.
Eskom’s proposed 53% tariff increase will have a negative effect on the economy, Business Unity South Africa (Busa) said on Tuesday. Speaking at the second day of public hearings of the National Energy Regulator of South Africa, Busa’s Roger Baxter said studies had shown the economic impact of the hike would lead to about 55Â 000 job losses.
The question of whether the government or the public should finance Eskom dominated the first day of hearings on Friday on the utility’s proposed 53% tariff increase. Eskom’s non-executive chairperson Valli Moosa opened the debate at the National Energy Regulator of South Africa public hearings, saying fiscal injections from government were needed.
Uncontrollable and unpredictable fuel and capital costs were key principals in the proposed 53% electricity tariff increase, Eskom chief executive Jacob Maroga said on Friday. ”The volatility that we see we cannot absorb as a company,” Maroga said at the National Energy Regulator of South Africa’s public hearings in Pretoria.
Eskom warned on Thursday that it might be forced to resume load shedding as its electricity grid was under renewed pressure. Eskom has struggled to meet demand for electricity in Africa’s biggest economy, resulting in power failures which forced key mines to halt production for five days in January.
The African National Congress and its labour allies called on Friday for electricity prices to rise only gradually, rejecting the state power firm’s appeal for a sharp hike to solve a dire power crisis. ANC secretary general Gwede Mantashe said it would be wrong for Eskom to use price rises to recover from past losses.
South Africa’s economy cannot afford a sharp electricity price increase, a leader of the African National Congress (ANC) said on Friday, adding that Eskom should not be allowed to use pricing to make up past losses. As part of efforts to tackle power shortages and fund infrastructure expansion, Eskom has requested a 53% increase in electricity tariffs.
Demands from various quarters that South Africa stop its electricity exports to neighbouring countries amounted to ”economic xenophobia”, Public Enterprises Minister Alec Erwin said on Wednesday. Eskom’s customers outside South Africa would be treated exactly like any other customer with the same rights, and this would remain so.
Eskom said on Wednesday that South Africa’s power supply remained limited and electricity prices were set to rise steadily. ”The system is still tight and vulnerable,” Eskom spokesperson Andrew Etzinger said in a presentation. ”Electricity prices are going to go up steadily.”
April saw a saving of up to 7% in electricity demand, Eskom’s chief executive, Jacob Maroga, said on Monday. He briefed President Thabo Mbeki and a presidential special joint working group on the current state of electricity supply in the country, the Presidency said in a statement.
A national task team to urgently achieve the reductions required to reduce load-shedding and to achieve targeted power savings has been established, power utility Eskom said on Friday. This was done during Friday’s briefing set up by the government to help manage the energy emergency.
Thousands of members of the Congress of South African Trade Unions (Cosatu) took to the streets of Johannesburg to protest against the rising prices of food, fuel and electricity. The march proceeded to the offices of Eskom and supermarket chain Pick n Pay, where memorandums of understanding were delivered.
The Congress of South African Trade Unions (Cosatu) warned on Monday of riots as it launched a protest campaign against soaring food prices. Rice prices on world markets have climbed about 75% in just two months, and the cost of wheat has rocketed by 120% in the past year. The price of maize has more than doubled since the beginning of 2006.
There is an urgent need to double electricity prices over the next two years, Eskom tells the National Electricity Regulator of South Africa (Nersa) in its recent application for a tariff hike. Nersa made an edited version of Eskom’s application available on its website on Tuesday.
The Democratic Alliance and trade union Solidarity want Eskom to release a full, unedited report of its application for a 53% tariff increase, they said on Tuesday. The application was due to have been published at noon on Tuesday on the website of the National Energy Regulator of South Africa.
Eskom’s bid to have parts of its 53% tariff-increase application withheld from the public is to protect its position in ”hardcore” coal sales deals, the company said on Tuesday. Eskom spokesperson Andrew Etzinger said that without this stance, the company might have to pay more for coal, pushing the price of electricity up even more.
Eskom has signed a five-year agreement to import an additional 250MW of power from Mozambique’s Cahora Bassa hydroelectric dam, the company announced on Monday. ”We are trying to squeeze as much capacity out of every resource,” said Eskom spokesperson Andrew Etzinger. The agreement was signed on Thursday April 3.
South Africa’s power crisis may last many years unless there is a drop in demand for electricity, utility 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.
In the latest blow to South Africans already reeling from scheduled load-shedding, entire cities will now be plunged into darkness as Eskom institutes even more extreme power cuts. The shock development, which will be known as sector-sharing, will see the country divided into four vertical zones, each spanning many thousands of square kilometres.
An Eskom appeal board has rejected an application for bulk electricity to a new mixed housing development on the West Rand, a media report said on Friday. It said the flagship public-private partnership near Kagiso in Mogale City was to provide 9 315 residential units.
The Western Cape’s Koeberg nuclear power station is firing on all cylinders again, the South African Broadcasting Corporation reported on Monday. Eskom spokesperson Andrew Etzinger said one of the Koeberg units, which had been taken offline for maintenance, was recommissioned over the Easter weekend.
While power supply was expected to remain steady over the long weekend, there was still a risk of load-shedding, Eskom said on Friday. Spokesperson Erica Johnson said in a statement: ”We don’t expect any load-shedding over the long weekend as demand patterns are historically lower during holidays.”
The National Energy Regulator of South Africa cannot ignore Eskom’s request for a 53% tariff increase, a business research and consulting firm said on Thursday. ”If the country expects the electricity utility to resolve the current capacity crisis, it must be given the resources to do so,” said Frost & Sullivan.
South Africa’s power situation has improved after a two-day crisis that threatened supplies to mines, state electricity firm Eskom said on Wednesday, but rolling cuts are set to continue. Eskom has been struggling to contain South Africa’s power crisis, the result of years of underspending on electricity generation capacity.
Eskom has applied for a 53% hike in electricity tariffs, the National Energy Regulator of South Africa announced on Tuesday. It said it had received the application earlier in the day. Eskom is seeking this hike in place of the 14,2% increase it was granted in December last year.
Two Eskom electricity-generating units were restored on Tuesday and two more should be back on line in the evening, removing any immediate threat of power cuts to mines, Eskom said. In January, power shortages forced gold and platinum mines to shut down for five days.
Power may have to be cut to South Africa’s vital gold and platinum mines if more generators fail because of bad weather, Eskom said on Tuesday, sending local mining shares tumbling. ”At the moment we are in a very tight situation,” said Eskom spokesperson Andrew Etzinger.
Gold added $24,95, or 2,49%, to trade at $1 025,05 by 1.30pm on Monday — this after rising more than 3% to a record $1 032,60 a troy ounce in overnight trade. Oil prices have also rallied in response to the dollar’s weakness overnight with Nymex crude setting a fresh all-time high of $111,80.
Eskom will carry out countrywide rolling load-shedding on Monday because of a rise in demand due to cold weather and after four generators tripped. The power failures, the first since February 4, are likely to continue until Thursday, but would not affect large industrial customers, who are operating with about 90% of their normal power requirements.
South Africa’s business confidence fell sharply to a seven-year low in the first quarter of 2008, as the sector fretted about an uncertain economic and political outlook, a survey released on Wednesday found. The Business Confidence Index, sponsored by Rand Merchant and the Bureau for Economic Research, fell by 19 index points to 48.
Seven French electricity experts visited South Africa last week to assist Eskom in dealing with the electricity crisis facing South Africa, the French embassy said on Monday. During his state visit to South Africa on February 28 and 29, French President Nicolas Sarkozy announced that France would be sending engineers to work closely with their South African counterparts.
The government is considering the division of South Africa into two time zones. This is according to Portia Molefe, Director General of Public Enterprises, who was on Wednesday briefing the minerals and energy committee in Parliament on the present electricity crisis.