Eskom to delay building

2008-03-04 00:00

JOHANNESBURG — All new construction projects larger than a normal home will be blocked by Eskom for the next four to six months. This will apply countrywide.

New housing complexes, filling stations, factories and all construction projects that require electricity supply from Eskom beforehand, will be delayed by up to six months.

New construction projects have to obtain electricity certificates before construction starts. Eskom will delay this process by initially not issuing any certificates.

Tito Zwane, a regional manager in charge of consumer services at Eskom, yesterday broke the news at a function held jointly with Johannesburg’s City Power for businesses.

Tony Stott, a senior manager at Eskom, later confirmed this strategy.

Mike Schussler, an economist at T-sec, said the move could severely limit economic growth. “Job creation will suffer a major blow. For example, 14 men who might have been appointed at a new filling station will now remain unemployed for longer.”

Schussler said he believes that the period of “four to six months” is only an indication and that it should rather be expected to be longer.

“It means that projects that now have to wait for six months will receive assistance only six months or more from now.”

Stott said the delay will apply to all large developments in all Eskom service areas countrywide.

Eskom will meet its obligations regarding all projects to which it has committed itself until mid-February.

“All new developments from mid-February fall under the new plan.”

Hugh McGibbon, Eskom’s distribution manager in the central region, said the message to developers is that projects should be postponed for the next four to six months.

“This includes large expansion projects at existing developments.”

In another announcement, Sapa reports that the Minerals and Energy Department said power rationing is an option under scrutiny to minimise the impact of power cuts on SA’s mines.

Deputy director-general Nelly Magubane said this option will be explored with companies first.

“We can’t ration households yet due to the metering systems. We are looking at various classes of customers. Eventually households would be included.”

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions. publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.