Archive for January 29th, 2008

Privatise Eskom

source: News24
27/01/2008 14:34 – (SA)

Johannesburg – In the current electricity crisis the privatisation of all Eskom’s components should be considered very seriously, Jan Bosman, Managing Director of the Afrikanerbond said on Sunday.

“In 1993 the government of the Philippines was confronted with a similar electricity crisis. The power shortage was ended when government entered into supply contracts with private electricity supply companies through the government controlled National Power Corporation (Napocor),” Bosman said.

The end result was a surplus supply for the Philippines, he added.

The fact that Eskom reports to two government departments was also a contributing factor to “the dragging of feet.”

“Apart from Eskom;s responsibility to the Department of Public Enterprises, the electricity policy is determined by the Department of Minerals and Energy. This delays any urgent decision making and long-term planning,” Bosman said.

Privatisation would bring in additional income for the treasury and it would also reduce the financial burden on government to manage entities which were often less competitive than their rivals in the private sector, Bosman said.

Privatisation would also send a very positive signal to international investors that South Africa was committed to market driven development.

Bosman said that privatisation could also lead to reduced prices and better services for the consumer.

“Privatisation can contribute to [continue reading]

source: Mmegi


Botswana Power Corporations (BPC) officials have admitted that the current power shortages were foreseen as far back as 2001, but their study underestimated the magnitude of the demand.

Addressing the media on Friday, acting CEO, Joseph Raleru said BPC conducted a feasibility study in 2004 after which the organisation targeted production of only 600 MW by 2023.

“However when we re-looked at the demand in 2006, it had increased significantly because of new mines, due to the high demand for copper on the world market. This rate of growth did not only take Botswana by surprise, but countries like Zambia also saw an increase in copper mining. We had to take new steps to make sure that the completion of the expansion of Morupule power station is brought forward to 2010/11”.

The high demand for power and investment on new projects is likely to see BPC increasing its tariffs, said Raleru, even though he was non-committal Raleru said the current power shortage in the country is made worse by a fault in a power line from [continue reading]