Eskom: Only local coal
22/02/2008 07:45  - (SA)  

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'Eskom's R60bn is not a gift' 'A massive stretch' for coal Power station tenders open

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Johannesburg - In order to efficiently generate electricity, Eskom would need to buy 45 million tons of coal over the next two years, the power utility said on Thursday.

Eskom's financial director, Bongani Nqwababa, said 30 to 34 million tons had already been contracted and only South African suppliers would be used.

"The emphasis is that they are all local suppliers. We will not be importing any coal," he said.

Referring to government's loan of R60bn to Eskom, as announced by finance minister Trevor Manuel in his Budget speech on Wednesday, Nqwababa said: "It is a significant positive step."

He said a 2c per hour levy on electricity would also help in reducing consumer demand.

Efficiency

"It is wise of the minister of finance to encourage energy efficiency so that people can lower electricity [use] by at least 10%," he said, adding that if people decreased electricity consumption "they won't feel the levies".

"Indeed every little bit helps."

However, Nqwababa said that while a "significant portion" of the industrial sector had an across the board reduction of 10%, the same could not be said for the agricultural, commercial and consumer sectors.

"The improvement is very minimal," he said.

Nqwababa, echoing the utility's chief executive Jacob Maroga, said that while demand had reduced and power cuts had been less frequent, the country was still facing an electricity emergency.

Tenders

"None of us should be under the illusion that this is behind us," he said, adding that plant maintenance, which was always undertaken in the summer months, would be completed by the onset of winter.

"If all of us pull together and all our plants are running and all our consumers are energy efficient, then it will be supportive," he said.

Nqwababa said that Eskom would be putting out tenders in the next week for independent power producers (IPPs) to generate and sell electricity to the utility.

He added, however, that the process would take time.

"In reality, (the IPPs) are likely to generate power from 2014 onwards," said Nqwababa.

Referring to an earlier media report that indicated that Eskom had invested in Zimbabwean power stations, Nqwababa said this was incorrect.

"Eskom has no involvement in Zimbabwean investment," he said.

- Sapa

- SAPA

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