SOUTH AFRICA - ESKOM ANNOUNCES NO LOADSHEDDING FORESEEN FOR WINTER

Eskom revealed that it does not foresee any load shedding being necessary during the upcoming winter.

New tariffs are set to start on 1 July, which will lead to a lower usage by industry and offset the increased demand for power during the cold winter months.

Andrew Etzinger, the acting head of generation, revealed that the power grid is stable, diesel stocks are high and maintenance is continuing at a good rate.

“We’ve done a lot of maintenance work over the past few months and are still continuing,” Etzinger told the Weekend Argus.

“Our coal and diesel stock levels are healthy. The system is stable, so we don’t foresee any load shedding. Normally in winter the peak period for demand is between 5pm and 9pm – but we don’t think it will lead to rolling load-shedding.”

However, Professor Anton Eberhard from UCT’s Graduate School of Business believes the struggling state utility is far from being in the clear.

“The problems are severe,” said Eberhard.

“They can be fixed. Governance is improving. Now they have to rebuild capabilities and skills that were hollowed out during the state capture years.

“The National Energy Regulator of South Africa tariffs and government bailout are insufficient to restore financial sustainability. Government will have to do more on debt relief and certain financial restructuring options are at an advanced stage of consideration.

“There is also the possibility of lowering Eskom’s cost of debt through arranging a large blended finance facility which includes some climate-related funding linked to accelerated closure of some of the old expensive dirty coal power stations.”

via - SABREAKINGNEWS