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Last Updated: Aug 27, 2008 - 10:55:30 AM |
Speaking at a conference on mining and metallurgical industry's
response to power crisis, Nersa CEO Smunda Mokoena explained that
economic impact of load shedding had been costed at R75 per kWh.
"The supply shortage caught South Africa by surprise," added Mr Mokoena.
Nersa inquiry has also found that power utility Eskom had responded
appropriately and speedily to power-supply shortage towards end of 2007
and going into 2008.
But while Nersa was aware of low reserve margins, that the mothballed
plant and low lead time open-cycle gas turbines were being
commissioned, and that low demand mid-summer period would be used for
maintenance, regulator was unaware of increased unplanned power cuts
and dwindling coal stocks leading up to virtual blackout in January.
What Nersa has identified is a potential conflict of interest between
generator of electricity and system operator, which is effectively
responsible for ensuring system security.
"We are very sceptical that current procurement is being done by Eskom,
not by government," Mr Mokoena said.
Procurement of generation capacity, including that from independent
power producers and co-generation, should be managed and coordinated by
a professional agent independent of Eskom, he further said.
"The sooner we establish an independent power procurer the better," he
added.
Meanwhile, Statistics South Africa has said that the country's gross
domestic product has accelerated to 4.9 percent in second quarter of
2008 from 2.1 percent in first quarter, which was as a result of
declines in manufacturing and mining related to an electricity crunch.
"Mining and manufacturing output recovered in latest quarter after
electricity shortages hit production earlier in year," said analysts at
RBC Capital Markets in a research report.
Economists had also expected the economy to grow 4.2% in the second
quarter.
Investment Solutions economist, Chris Hart, said figure emphasised that
South Africa had a "two-speed economy".
"Some sectors face recession if they are not in recession already, but
others are showing good growth. Agricultural industry for example has
seen tractor sales up 50% despite fall in vehicle sales. Strong upsurge
in agriculture suggests that sector is positioning itself to take
advantage of high food prices," Mr Hart said.
Source:Ocnus.net 2008
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