Hernic enters new Eskom buy-back programme

Engineering News 30 November 2012.

JOHANNESBURG (miningweekly.com) – Ferrochrome producer Hernic would temporarily shut down two furnaces at its De Kroon operations on December 1, as it entered a new power buy-back programme with State-owned Eskom.

Hernic, which completed its first buy-back agreement with the constrained power utility in June, would restart the furnaces in March.

Under the buy-back programme, Eskom provides compensation to companies that are able to reduce their demand for electricity temporarily, while sustaining employment levels and meeting existing contractual commitments…

(Editor’s note: The condition in the paragraph above imply that the company would not lose anything by using less energy anyway – so why pay them to do so? Incentivise them through suitable tariffs.)

More …

Advertisements