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S. African businesses concerned over electricity shortage

Xinhua, January 14, 2015 Adjust font size:

The South African business circle on Wednesday voiced concern over constant load shedding which has a serious impact on business, business confidence and consumers alike.

Such potential impact "is inestimable" as the electricity shortage continues to drag on, the South African Chamber of Commerce and Industry (SACCI) said.

The "parlous situation" in which electricity utility Eskom finds itself draws grave concern from SACCI, said SACCI President Vusi Khumalo.

Cash-strapped Eskom is facing growing criticism for poor management that is blamed for constant rolling blackouts across the country.

"SACCI believes that in situations such as this it is not only in the interests of business, but of the country as a whole, that concerted and unified action is necessary," Khumalo said in Johannesburg.

"For this reason SACCI has undertaken, through its membership, to work with Eskom, a member in good standing, to find workable solutions to the problems."

SACCI has therefore appealed to its members to submit any proposals that they may have to alleviate the situation, for joint consideration by Eskom and SACCI.

In the meantime SACCI appeals to consumers to limit the use of electricity as far as possible such as, but not limited to, switching off all unnecessary lights and appliances, Khumalo added.

He urged consumers to consult the municipal and the Eskom websites to become aware of load shedding schedules that affect their area and to plan activities accordingly.

South Africa has suffered from power insufficiency since 2008. The situation became worse in November last year when a number of Eskom power stations broke down due to poor maintenance.

Eskom reportedly is on the brink of bankruptcy and cannot afford the 1 billion rand (about 90 million U.S. dollars) worth of diesel it needs for February.

South Africa is literally running on diesel today, burning 140 million litres a month to keep the lights on.

On Tuesday, Eskom said it has signed agreements with 26 independent power suppliers (IPS) to cope with the worsening power shortage.

The IPS are expected to private wind, solar and hydro power to increase the supply of electricity, adding 1,000 megawatts to the grid, Eskom said. Endi