Publication: The Times Issued: Date: 2008-03-07 Reporter: Robert Laing Reporter: Tamlyn Stewart Reporter: Mpumelelo Mkhabela

Eskom Exported Power During Crisis

 

Publication 

The Times
Date

2008-03-07
Reporter Robert Laing
Tamlyn Stewart
Mpumelelo Mkhabela

Web Link

www.thetimes.co.za

 

"SA households paid four times as much for electricity"

Electricity sold cheaply to neighbours while we suffered

Eskom increased exports to neighbouring countries in January, the month it shut down the local mining industry for five days and subjected cities to rolling blackouts that averaged more than three hours a day.

Statistics South Africa's electricity data for January shows Eskom's exports were nearly 13 percent higher than in January 2007.

The utility exported 1278 gigawatt-hours this year, nearly 7percent of the 19 322 gWh available in the country.

Mike Schussler, chief economist from T-Sec, said Stats SA's figures tallied with Eskom's own. The increase in exports indicated neighbouring countries got preferential treatment even though they pay half the rate domestic customers are charged.

Schussler said: "Eskom's annual report shows it charges customers outside South Africa an average of 11c per kilowatt-hour, while it charges domestic industry 17c/kWh and households 41c/kWh. In other words, South Africa does not have the world's cheapest power: our neighbours do, thanks to Eskom.

"And these figures show that Eskom shuts down South African mines and industry before it stops exporting power," Schussler added.

While exports went up, the amount of power imported was cut dramatically by nearly 40percent to 638gWh ­ amounting to half the power exported.

These startling revelations came as President Thabo Mbeki yesterday declared an end to what he termed South Africa's "extra- low electricity price regime".

He said existing low prices discouraged independent energy producers from entering the electricity market as they feared they would not make profits.

Responding to questions in parliament, Mbeki said it was clear the regime of extra- low prices could not be sustained.

"We have said so ­ that the prices will increase. Nevertheless we will still remain the source of the cheapest electricity in the world," he said.

Eskom spokesman Andrew Etzinger said less power was imported because the Cahora Bassa hydro-electric plant in Mozambique was generating only half its usual capacity because of maintenance.

Cahora Bassa accounts for the bulk of the 1 000 gWh South Africa usually imports monthly.

Etzinger said the reason for the increase in power exported in January was not yet clear.

"Eskom usually exports about 1.5 percent of its power to neighbouring utilities, and another 3 percent to industrial customers, mainly the Mozal smelter in Mozambique. Like all other large customers, these were asked to cut their consumption in January," he said.

Doret Els, an economist at Efficient Research, interpreted the rise in exports as evidence of bad planning by Eskom.

Stats SA figures show that even when Cahora Bassa is running at full capacity, South Africa exports more electricity than it imports, contradicting Public Enterprises Minister Alec Erwin *1's statement that South Africa is a net importer of electricity.

DA spokesman on public enterprises Manie van Dyk said yesterday he had submitted written questions on this to parliament.

"Who do we export power to? How much do they pay? Are their payments up to date? I've sent a detailed list of questions for Erwin to answer in parliament," he said.

Mining industry spokesmen declined to comment on Eskom's having shut them down but having increased exports. "We're scared of having our power cut off if we talk to the press, but don't quote me on that," one said.

The ANC meanwhile slammed Eskom's decision to delay the processing of applications for electricity certificates for new major property developments.

ANC spokeswoman Jessie Duarte said the decision was "reckless" and "irresponsible" *2 and the party wanted Eskom to reconsider .

Duarte said the ANC's main concern was that the delay might cause job losses. "We are very worried about employment shrinkage in the [building] sector.

"Such delays could undermine efforts to grow the economy, and slow the rate of important capital investment," she said.

Lance Greyling, the Independent Democrats spokesman for energy, said Eskom's delaying of large construction projects made a mockery of Erwin's statement that economic growth would not be affected by the electricity crisis.

Etzinger responded: "From Eskom's side we certainly understand the situation is very serious. We have placed a moratorium on new electricity certificates until the end of May this year. It is not a rejection of these projects; it is a delay in the approval process."

Aubrey Matshiqi, an analyst at the Centre for Policy Studies, said the move could be seen as a signal that, under Jacob Zuma, the party would not ignore deficient performance by government and parastatals .

" It could be a statement about the underperformance of those deployed in the state who did not make the right decisions, resulting in the energy crisis," he said.

With acknowledgements to Robert Laing, Tamlyn Stewart, Mpumelelo Mkhabela and The Times.


*1       Pinoccio at work once more.


*2      It is not only Eskom who are reckless and irresponsible, it is government, specifically cabinet.