A joint statement from the African National Congress (ANC) and the Congress of South African Trade Unions (cosatu) has declared that Eskom's proposals for a 53 per cent tariff increase are unacceptable.

A meeting between the two organisations discussed the causes and implications of the South African crisis.

Reports from Engineering News indicate that the groups called on "Ministers to consider different options on how best the crisis could be handled moving forward".

A statement from the groups read: "The meeting declared that the electricity crisis must not lead to job losses, and that the proposed 53 per cent tariff increase is not acceptable. It was agreed to support the call for an Energy Summit to find solutions to the energy crisis."

But the South African Government is considering the Eskom application for a 60 per cent price increase.

Eskom has added to the worries by indicating that the power crisis is likely to continue for some years if the demand for power continues to grow.

The electricity provider has begun load shedding and said that a sustained drop in electricity demand is needed if South Africa is to come through the crisis.

Jacob Maroga, Chief Executive Officer of Eskom told a press conference: "If we only rely on supply (increases), the numbers are not looking good for many years."

According to reports from Reuters, Mr Maroga indicated that he would support a delay in the construction of energy-intensive projects.

Mines are currently operating at 95 per cent capacity and it looks unlikely that this will reach 100 per cent in the current situation.

But Mozambique has agreed to sell more power to Eskom.

According to officials from Mozambique, the South African energy provider is close to buying more electricity from the country to help with the ongoing crisis.

An additional 250MW of power could be purchased each day from the Hydroelectrica de Cahora Bassa, the Chief Executive of the development, Paulo Muxanga told Reuters.

Source:

SAfrica's Eskom says demand key to power crisis, 02/04/08
http://uk.reuters.com/article/oilRpt/idUKL0282445120080402?sp=true

SA's two centres of political power at odds over handling of power crisis, 01/04/08
http://www.engineeringnews.co.za/article.php?a_id=130228

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