BUSA meets with Eskom

The meeting is the widest consultation by Eskom with the business community - with participation from more than 44 BUSA member organizations, representing both small and large businesses.

The purpose of this meeting was to create a platform for an all-inclusive consultation with all stakeholders from the business community. Jerry Vilakazi, CEO BUSA, stated that BUSA is pleased with the representation displayed at the meeting. “Representation at this meeting underscores the critical role BUSA plays in unifying the often divergent interest within South African Business” Vilakazi stated.

Maroga provided a detailed overview of challenges currently facing Eskom and broader electricity supply challenges; long term demand forecast; the ESKOM project pipeline; progress on capacity expansions; financial matters; and demand management issues. He indicated that the main challenges affecting Eskom include:

1. Ensuring continuity of supply – keeping the lights burning
2. Successful execution of capacity expansion programme
3. Maintaining financial sustainability of Eskom
4. Responding to climate change
5. Successful implementation of Electricity Distribution Industry (EDI) restructuring
6. Building public confidence in Eskom and the system

In his assessment of the causes of existing electricity supply challenges, Maroga mentioned the following:

1. Late start of the New Build Programme
2. Insufficient reserve margin
3. Medium term planning effectiveness
4. Demand growth – 50% increase from 1994 to 2007

In this regard, BUSA appreciated Eskom taking ownership of some of the causes of “Load Shedding” and other electricity supply concerns. The level of transparency displayed by Eskom enables all stakeholders to gain a clear understanding of the extent of the electricity supply problems and augment behaviour where it is appropriate and possible.

BUSA members raised concerns and made proposals regarding improving certainty and predictability of “load shedding”. Many members highlighted the impact of load shedding on their industries. Ms Mthethwa, President of Nafcoc, highlighted the plight of SMMEs – particularly loss of income and employment, and the destabilizing effect this might have on the communities.

BUSA members also suggested that an effective and appropriate prioritization and sequencing framework must be strengthened. This would ensure that all stakeholders make targeted intervention that will have a maximum impact on restoring security of electricity supply.

Business also proposed measures towards the diversification of energy sources and electricity supply, which would ultimately alleviate the pressures on electricity supply.

BUSA members reaffirmed their commitment to demand management initiatives and will be providing further technical input to Eskom and other policymakers in this regard.

It was agreed that BUSA would continue to engage with Eskom at both strategic and technical levels. It was also reported that the BUSA Technical Task Team will be reviewing the proposals received from more than 44 member organizations later today. The outcome of this meeting is expected to be a broadly mandated proposal to government.

The BUSA proposals to be discussed this afternoon include energy efficiency promoting programmes and projects focusing on demand management initiatives. The BUSA meeting this afternoon will also discuss the signing of an “Electricity Pact” with Eskom.

It is the view of BUSA that the current electricity challenges faced by the country demand that all stakeholders play their part to ensure that it does not result in economic paralysis. For its part, BUSA will work with Eskom, government and other stakeholders to arrest this very critical challenge.