Pay more for less service — this was pretty much the message from Eskom this week.
Now, I know, before you start jumping up and down, that price escalation is critical to ensure capital availability to construct generation capacity and infrastructure, which may deliver power in 10 years’ time at approximately the same levels of availability as we currently experience.
Yup, you’ve got it, despite all the fabulous efforts to ensure the lights will be burning post-2010, a very real possibility exists that load-shedding will become a comfortable familiarity of everyday life in Southern Africa in the long run.
It’s simple: we don’t have enough power for this region now. Given current plans for expansion and rate of progress (and delay), we won’t have enough power in 10 years’ time. Despite great plans for independent power generation, co-generation, demand-side management, power conservation programmes, power interruptions and awareness campaigns, the truth is we will never again experience the low power tariffs that catapulted South Africa to close to the top of the list of heavenly industrial investment destinations.
We will also not have a mentionable national reserve-generation capacity, which means more power cuts. Compounding the issues, all the focus on independent power generation is opening a whole new can of worms … did anyone mention fuel?
Even if we build monstrously large distributed power stations, owned by everyone but Eskom, we may not have the fuel to generate power with these shiny new toys. And I’m not talking coal … gas and diesel and other lesser-known fuel resources are already under pressure — remember the scramble for gas last winter? It’s getting worse, not better; if you suddenly realise you may not have power this winter, it is very logical to add a gas heater to the family’s asset inventory. The problem is similar to that of trying to grow crops without rain — you will not feel the love.
This whole power issue has just become a pain. The downward spiral has begun. The only thing that keeps me optimistic here is the fact that renewable energies are fast becoming so much more attractive. I am eagerly anticipating the meltdown to see in which direction the ants will scramble, because the performances over the past few months have been erratic, unstructured attempts to control the crisis.
I think there’s a need for some focused long-term planning and vision from the powers that be.
The solution to South Africa’s electricity crisis is quick, costs no money, and benefits the whole country tremendously.
The solution is SHUT DOWN HALF of your platinum mines in the country. Leave the other half running. You will save so much electricity that no more load sheeding is required of any one. The international price of platinum will go up to such high levels that the half platinum mine still operating will make three times more money, more than enough to make up for the lost production.
Why can’t you guys do it?
@Sandy: I myself have been wondering about the same thing. You are the first person I’ve seen to actually echo these sentiments in writing. It remains to be seen whether there will be any acknowledgment of this potential problem, or whether they’ll let the frogs boil for a little longer before breaking the news to them. Either way, nothing will be done until it’s far too late.
My advice: do like they do in Nigeria, buy your own generator. But you’ll have to grow your own biofuel crop.
What I would like to know is at what price do we sell our electricity, petrol, diesel and gas to other countries. Why should we have to pay more for what is ours than somebody else? SA can not afford to carry the whole of Africa.
Let’s all face the cold facts – the recent pronouncement by Eskom CEO, Jacob Moroga and our ANC political masters that we should be forward looking and solutions driven, rather than examining the reasons for the power cuts catastrophe and identifying the culprits wring completely hollow. It’s rather pathetic that they simply are unwilling to take it on the chin, admit their culpability and resign. But rather than whinge and complain further, I would rather outline a proposal.
Government and Eskom tell us, the consumers, to reduce consumption, and threaten to ration use under threat of severe penalties. Naturally, households and businesses can do their bit. But what qualifies the people who caused this mess in the first place to now pronounce on solutions? How can the problem become the solution? And how can consumers possibly have any confidence in such an approach? The answer is multi-faceted and requires the following ten steps:
1. Launch an immediate public judicial enquiry, headed by a panel of current and retired senior judges, with powers of sub poena against individual directors, ministers and cabinet minutes, and thereby identify and prosecute the people responsible. Charges of criminal negligence, economic sabotage, corporate manslaughter and perjury could follow. Following due process, jail and fine those found guilty, regardless of race. No plea bargains. No suspended sentences. No presidential pardons.
2. Launch civil proceedings against current and past directors, both executive and non-executive, regardless of race, for damages caused to consumers. Some of the current (white female) non-executive directors have rather fat bank accounts.
3. All damages to be paid into a fund to assist those who are most severely and negatively affected by the power blackouts and to finance capital expenditure.
4. Publish an open letter in the popular press, identifying the past and present directors of Eskom since 27th April 1994 and the bonuses and share allocations they received. Ask them politely to repay these amounts to the fund.
5. Insist that the current ministers for trade and industry, energy and the entire Eskom board resign with immediate effect. If they wish to reapply for their jobs let them do so on the Eskom website and let the consumers vote when they pay their next bill.
6. Immediate cancellation of any parts of the arms deal still outstanding. Sell all of the aircraft, corvettes, submarines and armaments back to the original sellers at cost, or on the open market or Ebay for that matter. This should generate a few billion Rands.
7. Launch an international talent search to identify, and hire the best 1000 engineers and technicians available at whatever it costs for five years and appoint them into Eskom.
8. Encourage innovative power saving solutions by household consumers via incentives such as free electricity for life for the best 10 ideas.
9. Cut off electricity to habitual non-payers, whoever and wherever they may be.
10. Allow and encourage private enterprise to build electricity generation and let people sell or trade electricity amongst themselves.
Sandy what struck me with Eskom’s latest requested price hikes, which are apparently needed to pay for building new power stations, is that because Eskom is mainly going for coal and nuclear energy sources, instead of renewables like solar, that Eskom is forcing its consumers to pay for their own destruction but, it is not letting the unaware consumer into that scenario, they might object. As a consequence I want to detach myself from Eskom’s electricity as soon as I can.