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| Eskom / South Africa Raises Electric Power Fee On Moderate Line |
| = Owing To Depressed Economic Situation, Its Raise Will Retreat From 88% And May Ask For 34% |
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Eskom, a national electric power corporation in South Korea, already raised in 2008 their electric power fee by 27.5% and, following this increase of the fee, has intended to raise further in 2009 electric power fee to a large extent but it is supposed that, by taking into consideration of a current depression of the world economy, Eskom has decided to change their raise of electric power fee to a moderate line. As regards an extent of electric power fee to raise to be applied by Eskom to the authorities concerned, Eskom so far did not comment on this point but, in relation to Presidential Election to be held on the 22nd of April, a raise of electric power fee has become a very political matter. However, Eskom was initially thought to raise electric power fee by 88% in 2009 and an information of this percentage to raise was spread over to part of media in South Africa. However, owing to a depression of the world economy, prices of such main minerals and metals produced in South Africa as platinum, chrome, manganese, coal, and so on have fallen considerably and the ferro-chrome industry of South Africa has been driven to operate at 20 - 30% of the whole capacity. Consequently, the volumes of electric power consumed by the South African industries have decreased to a large extent. In view of the depressed circumstances as mentioned above, Eskom is supposed to have changed their policy to raise electric power fee from a stiff measure to a moderate line and, according to the latest information, an extent of electric power fee to be applied by Eskom to raise is estimated to be approximately 34%. Eskom said that, in order to cope with a shortage of electric power for the future, it is necessary for Eskom to invest R.343.0 billion (on the averaged exchange rate of US$1.00 : R.8.250 for 2008) in facilities to generate more electric power for the next 5 years, and it has been already decided to finance for Eskom R.60.0 billion under the guarantee by South African Government and R.500 million from Africa Development Bank. Also, in order to raise electric power fee, Eskom has planned to secure funds. Eskom is scheduled to expand the volumes of electric power to be supplied by 16,304 MW until 2016 and plans to construct two large-scaled electric power generation plants of <> Madupi (4,788 MW) and <> Bravo (4,818 MW). The former is expected to start its operation from 2012 and the latter is planned to operate from 2013. Therefore, an executive of Eskom said in November of 2008 that, in order to achieve these projects, it is required to raise electric power fee on a scale of 20 - 30% per annum for the next 3 years. However, a considerable raise of 88% for electric power fee was suddenly informed to the parties concerned and it has been felt to be apprehensive of striking a blow at the ferro-chrome industry of South Africa, which has been suffering from a depression of the market. In relation to supply and demand of electric power, Eskom of South Africa has held only 2.5% of its reserved margin as of the end of 2008 and even cut of electric power supply by 10% implemented in 2008 is still far from securing 15% of reserved margin as targeted (to return to the level in 2003). Under the present situation, the volumes of electric power consumed in South Africa have temporarily decreased but, by taking into accounts of the matters which South African population is increasing and the living levels are elevating, the consumption of electric power in South Africa is in the direction to increase. |
| last modified : Tue 07 Apr, 2009 [10:23] |
