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Jo'burg opts for 4-hour cuts
17/03/2008 21:02 - (SA)
Michael Hamlyn
Cape Town - In response to industrial customers' requests in Gauteng, the central region and the City of Johannesburg have decided to move to four- to 4½-hour power cuts, instead of the standard two- to 2½-hours. But, the cuts will come at less-frequent intervals.
Giving this written response to a parliamentary question, Public Enterprises Minister Alec Erwin said: "The durations are decided primarily by local government in conjunction with Eskom."
The minister was responding to a flurry of questions from opposition MPs on the electricity crisis.
He told Manie van Dyk of the Democratic Alliance that all customers were considered for load shedding, including vital industries.
However, he added: "Where possible, certain essential services may be excluded permanently or for an extended period of time from the load shedding schedules.
"The impact and consequence of each essential load will be analysed, and decisions will be made to treat them appropriately, taking into account all the relevant circumstances, including the design of the network."
Smelter operating at 90%
Willie Spies of the Freedom Front Plus was told that the aluminium smelter in Mozambique had a supply contract for 950mW of power, but that the smelter had offered additional hours to help during the energy crisis in January 2008.
"In addition," said Erwin, "once the commitment was made by South African customers to reduce their off-take by 10%, this reduction was made by the smelter. It is therefore operating at 90% of normal levels."
Van Dyk was also told that the 14.2% increase granted to Eskom by the regulator for the 2008/'09 financial year primarily would be spent on the higher primary energy (fuel) costs and on the accelerated capital expansion programme.
Asked about future price increases, Erwin said that the following three financial years would form the second multiyear price determination. The rules and conditions would be finalised by the end of 2008.
Erwin added that Eskom prices were related to the costs associated with providing the electricity to the customer.
Eskom prices, he said, did not include any form of discounts to mining and industrial companies.
Van Dyk also asked about problems with BEE companies supplying coal to Eskom power stations.
He was told most BEE firms met their contractual obligations in terms of tonnage and quality.
"When there are problems with performance, as with all other companies, these are dealt with through the contractual mechanisms. There are no ongoing breaches of contracts," said Erwin.
Tender procedures
"Eskom deals with a large number of BEE companies, especially for short-term contracts.
"Eskom does not award contracts on the basis of BEE status alone, but on commercial, financial and technical criteria as well."
Hendrik Schmidt of the DA asked whether tender procedures for the Bravo power station to be built in Mpumalanga had been adhered to.
Erwin said they were. "Eskom, and in particular, the Eskom board implemented appropriate measures to ensure a fair and transparent procurement process," he said.
- I-Net Bridge (News24)
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