Business counts cost of new power programme

WHILE IT has admitted being at fault for SA’s lack of investment in power generating capacity, the government’s national emergency campaign – including a hike in electricity prices, mandatory quotas, and a penalty and incentive system – still leaves a lot to be desired, according to Keith Brebnor, CEO of the Johannesburg Chamber of Commerce and Industry (JCCI). “All very much still a ‘users suffer’ scheme,” he said. This followed minister of public enterprises, Alec Erwin, announcing the emergency programme last week – designed eventually to achieve overall savings of between 10% and 15%. Government will implement an electricity rationing programme as a “quick hit” solution to address the current power blackouts, according to minerals and energy minister, Buyelwa Sonjica. “We have discussed how quotas will be allocated, who will be exempt from the programme, what incentives and penalties will be in place, when it will start and what legislative enablers we need to have in place for the programme to work,” Sonjica added. This official declaration of the national energy shortage is part of the overall Eskom scheme to combat the problem. SA industry and commerce can’t make any official comment yet, Brebnor told FTW. “At first glance,” he said, “I’d say that the critical deficiency of the emergency scheme is that it seems to be purely aimed at power management, and not power supply. “But what it will mean for business in practical terms is not made clear, and the JCCI and Busa are in the process of acquiring from government a detailed document of the proposals.” What the plan entails: • An Intensified energy efficiency campaign; • Accelerated introduction of co-generation; • Developing a power rationing framework; • Reviewing the tariff structure to reflect the economic cost; • Reviewing load shedding protocols to minimise disruptions; • Improving communications during load shedding; • Developing a clear framework for connecting new projects; • Focusing attention on new build to minimise project slippage; and • Resolving long-term funding of the building programme.