Electricity crisis in SA? Lights are on aren’t they?

SAAEA 24 August 2012.

“Because the lights are on in South African homes and offices, we think there is no electricity crisis. It’s an illusion. In fact the lights should not be on all the time as Eskom should be load-shedding. Instead it is Eskom’s buy-back programme which has been keeping the lights on and Eskom’s savings are in fact losses; serious and unrecoverable loses to SA’s economy which will impact far into the future.” This was the comment from Doug Kuni, MD of the South African Independent Power Producers Association (SAIPPA) at a media briefing held at the Free Market Foundation (FMF) on August 14th 2012.

Kuni said that a conservative estimate of the supply shortage is 5,000MW excluding current projects. Unless this crisis is acknowledged and resolved very urgently then all talk of growth and jobs is superfluous because without power the economy cannot grow and it is already preventing desperately needed job-creating economic expansion in the region of 3.0 to 3.5% gross domestic product (GDP) per annum…