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dam-l Eskom power demand drops/LS

Wonder what this will mean for regional dam plans?



Business Day (Johannesburg) 



Eskom may cut capacity as demand falls 

April 29, 1999 
By Robyn Chalmers 

Johannesburg - Eskom may be forced to reduce the number of shifts it runs at most of its power stations to cope with the excess capacity building up due
to a falling demand for electricity.

All of Eskom's big power stations run on a 24-hour basis, divided into three work shifts. The plan is to reduce this to two shifts, so the stations will run
on a roughly 16-hour basis.

The fall in demand has resulted from the international and local economic slump.

"In the event that the current low growth (in demand) continues, Eskom will have to consider additional measures to deal with the overcapacity," Eskom
CE Allen Morgan said. Eskom suffered a 0,6% drop in electricity sales in the year to end-December after a 3,4% rise in 1997.

As a result of the overcapacity, Eskom will also postpone plans to build new generating capacity. Analysts now expect that Eskom will need fresh power
by 2009 as opposed to an earlier estimate of 2005.

A report by the SA National Energy Association, the SA member committee of the World Energy Council, said Eskom's significant excess capacity since
1990 illustrated the severity of economic conditions in SA.

Falling demand for electricity means Eskom does not have to spend the billions of rands needed to build new generating capacity. This is a key factor
behind Eskom's ability to retain its position as one of the world's lowest-cost electricity producers.

One analyst said Eskom also had a number of mothballed power stations which could be recommissioned before new capacity was built. The utility also
recently started importing power from other African countries.

Talks on the terms and tariffs for the purchase of electricity from Cahora Bassa in Mozambique have yet to be concluded.

Morgan also said there was a growing market for Eskom's technical skills. Last year, Eskom's technology group posted revenue of R4,2m, 60% above
budget, due largely to the group's entrance into the consultancy market. 



 Copyright © 1999 Business Day. Distributed via Africa News Online(www.africanews.org). For information about the content or for permission to
                         redistribute, publish or use for broadcast, contact Business Day at the link above. 

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      Lori Pottinger, Director, Southern Africa Program, 
        and Editor, World Rivers Review
           International Rivers Network
              1847 Berkeley Way, Berkeley, California 94703, USA
                  Tel. (510) 848 1155   Fax (510) 848 1008
                        http://www.irn.org
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