Good news for eThekwini developers is that the city is holding off on the Eskom ban on new developments. The ban is expected to cause a ripple effect on the economy.
Eskom told the Energy Crisis Coping Forum in Durban on Saturday that it would continue what is perceived to be a stranglehold on new developments such as office blocks and housing clusters requiring more than 100KVa (enough to power a small office block).
The delays are expected to last for between four and six months, or perhaps even longer as the country needs to save 3000MW until at least 2012. This is when new power generators will become operational.
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The ban has not just affected long-term planning for developers, but some current projects have been shelved, such as a 362 unit retirement home, and projects at Coega in the Eastern Cape.
Sandile Maphumulo, head of eThekwini Electricity told the forum, organised by the South African Institute of Electrical Engineer, there would come a time when he would have to stop new connections.
Ian McKechnie, former institute president, said the implication for consumers was for them to develop coping strategies.
"The distribution infrastructure is a crisis area," he said.
According to a National Energy Regulator of South Africa (Nersa) municipal audit many of their networks were in a poor state of repair and "faltering" because of poor housekeeping.
Maphumulo said that networks were not designed for load shedding; when power was restored and the breakers in a sub-station tripped the station could not be put back on-line by remote control.
He said, based on the city's experience, it was correct to exempt industrial customers, hospitals, sewage works and unreliable plants.
"We have to protect our industrial customers and I apologise in advance to residential areas for future load shedding," he said.
Smart meters
Maphumulo said the city ditched the idea of installing geyser switches and other "gimmicks" like solar powered traffic lights. Instead the city would be implementing "smart meters".
Traditional electricity meters can measure only total electricity usage, while the smart meters record how much electricity is used over 30 minute periods across the day. This would allow the city to charge a peak period tariff, and the users would be able to change the times at which they used electricity.
Maphumulo said the city expected Eskom to finance the roll out of the meters once the Electricity Regulations Act was enacted.
Durban Chamber of Commerce marketing manager, Zama Phakathi, said Eskom's decision was "unfortunate".
"It will have a ripple effect on the entire economy, especially on casual labour that depends on construction work, and suppliers," Phikathi said.
She said although they understood the reason for the decision, there was a huge shortage in residential development and this area was particularly hard hit.
According to Dr Dave Lennon, Eskom Resources and Strategy managing director, the demand for energy had increased by 50% between 1994 and last year and there had been an "inadequate uptake of contingencies".
"The early signals were there, but we had a late start to the new building programme," said Lennon.
There were a number of mid-life generation units - plants that were less reliable. "Any shock like bad weather, plant failure or interrupted coal supply has the potential for load shedding," he said.
"The system is still tight and we will have to continue to reduce energy use by 3 000mw until at least 2012," he said.
One developer who had been affected is Henk Viljoen. He had to put a 362 unit retirement village on hold because power could not be guaranteed.
"You work two to three years on a project and then there is no power. We can start construction, but it is pointless without the assurance that power will be supplied," he said.
Neil Cloete, managing director of Grinaker-LTA, said that existing projects had not been affected although there had been delays at projects at Coega.
- This article was originally published on page 5 of Tribune on May 11, 2008
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