Riyaz Patel
The DA believes that embattled power utility Eskom is “more concerned about funding Eskom’s deteriorating operations than the actual job of making it a profitable, efficient and stable energy producer.”
This, after Eskom said it will cut up to 2000 megawatts of power from the national grid Wednesday due to a shortage of generating capacity, starting at 9am.
The power cut announcement follows Eskom’s decision to drag national energy regulator Nersa to court, challenging its decision in March which allowed for tariff increases below what Eskom was seeking.
Also on Inside Politic: Eskom Says Energy Regulator’s Tariff Hikes Not Enough, Seeking Court Intervention
“The DA warns Eskom against using rolling blackouts as a bargaining tool for more money,” said DA MP Natasha Mazzone.
The rand, meanwhile, slipped more than 1% Wednesday to its softest level in a week after Eskom nationwide blackout announcement for the first time in more than six months.
“There was an initial knee-jerk reaction to the announcement. And the longer it (blackouts) goes on, the worse it will be for the rand,” said currency dealer at TreasuryOne Andre Botha.
Another area of concern is that Eskom’s announcement on power disruptions coincides with the start of the matric exams.
The Department of Basic Education said the extent of the impact of the blackouts has not yet been established, but reassured that “contingency plans are always put in place to accommodate situations of this nature.”
Eskom implemented one of the worst power cuts in several years in February, hurting small businesses without backup power generators and industrial firms that consume large volumes of power.
