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
Eskom Logo

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

Eskom’s Ingula Storage Pump scheme running ahead of schedule

Eskom retracts load shedding statement

Share your thoughts

Join the conversation

Connect with Us

androidappletwitterfacebookgoogleplusfeednewsletter

Poll

Do you regularly watch SABC TV channels or listen to SABC radio stations?

View Results

Loading ... Loading ...

More News

South Africa’s top websites and publishers

Largest websites in South Africa on all devices

Effective Measure’s website traffic statistics for November 2016 reveal the top websites and online publishers in South Africa.

Resisting censorship of cyberspace

Computer internet censorship

“We need to take the internet back, not as liberals responding to these attacks, but as citizens of every creed demanding that cyberspace not be censored.”

Why FNB dumped the Guptas

FNB logo

The FirstRand Group has revealed why it closed the Guptas’ bank accounts.

SABC board chair’s attempt to interdict Parliament is “utter arrogance”

SABC logo on paper

The arrogance of the “one-person board” of the SA Broadcasting Corporation needs to be nipped in the bud, ANC chief whip Jackson Mthembu believes.

Free MyBroadband Newsletter
×