Load shedding was ended by South Africa’s weak economy, not Eskom

South Africans have not experienced load shedding for the past six months, but this is not thanks to Eskom, states an industry expert.

By - March 15, 2016 Share on LinkedIn
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South Africans have not experienced load shedding for the past six months, but this is not thanks to Eskom, states a report by Bloomberg.

The improvement in the stability of the country’s electricity supply has more to do with economic slowdown than what Eskom has done to improve itself, stated the report.

“A rout in metals prices has hurt mining and lower global demand has curbed manufacturing, which together make up 20% of [SA’s] GDP,” said Bloomberg.

“The issue isn’t that Eskom has magically turned around, the issue is that demand has fundamentally collapsed,” said Shaun Nel, spokesman for the Energy Intensive Users Group of South Africa.

Mines are Eskom’s third-biggest customer group, making up 14% of total sales.

Power generated by Eskom fell to the lowest levels since 2006 last year, according to Bloomberg, while the company’s revenue continues to increase.

“The national energy regulator allowed the company to raise prices by an average 16% annually, or more than double the mean inflation rate of 6.1% over the 10-year period,” stated Bloomberg.

More on Eskom

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Eskom retracts load shedding statement

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