South Africa plans to stop load-shedding in 12-18 Months – Finmin

DAVOS, Switzerland. Jan 16 (Reuters). South Africa’s Finance Minister Enoch Gottongwana announced Monday that the country has a plan to improve energy supply. This will prevent any power outages in the next 12-18months.

“Eventually, in the next 12-18months we will be capable of saying load-shedding is the past. This is our goal,” Godongwana told Reuters at the World Economic Forum (WEF), held in Davos, Switzerland.

Godongwana stated that “stage 6” power cut, which means at least six hours per day without electricity for most South Africans, would be eliminated in five months after facilities are rehabilitated and demand management measures take effect.

When asked if Eskom, the state-owned power utility, could expect more cash to fuel its diesel engine, he replied: “I don’t think Eskom is having a diesel problem. I think Eskom needs to improve its management.”

Referring to South Africa’s last week approval of an 18.65% power price hike for the financial years that started on April 1, he stated: “I suspect they (Eskom), sufficient resources to be in a position to deal with all that stuff.”

Godongwana said that the rand, which had earlier fallen against the dollar on Monday as investors were concerned about the power supply situation, “has proved to be resilient” but South Africa must communicate better how it is addressing the problem.

President Cyril Ramaphosa cancelled earlier plans to attend the annual WEF conference over the crisis. Godongwana stated that he would mention those efforts in his February 9 state-of-the-nation address.

He declined to elaborate on the state’s proposals to take over Eskom’s $400 billion rand ($23.5Billion) debt. He said that he was “sharpening” his pencil to give the details of his February 23 budget presentation. ($1 = 17.0312 Rand) (Reporting and Editing: Alexander Smith).