JOHANNESBURG (Reuters) &#8211; South Africa’s Eskom has offered some managers voluntary severance packages, capping costs at 400 million rand ($26.8 million), a communique sent to staff by the struggling power utility showed.



Eskom does not generate enough cash to cover its mammoth debt servicing costs and expects to make a loss of around 20 billion rand this financial year.



The severance packages are open to managerial employees in non-core positions as well as managers from 60 to 62 years old, according to the communique, which was dated Feb. 6.



Eskom spokesman Sikonathi Mantshantsha declined to comment.



Analysts have long said that Eskom should cut its bloated workforce of more than 46,000 staff.



Under pressure from trade unions, South African President Cyril Ramaphosa said last year that voluntary severance packages would be the preferred method to cut costs at Eskom, rather than layoffs.



Eskom said in the communique that staff could apply for the severance packages from the third week of February, with employee exits planned for the end of April.



Eskom also offered voluntary severance packages in 2015.



($1 = 14.9245 rand)



Reporting by Alexander Winning; editing by Jason Neely

South Africa’s Eskom plans to spend up to $27 million on severance packages

CAPE TOWN (Reuters) &#8211; South Africa is planning to create a new power generating company separate from struggling state-owned utility Eskom to boost energy security, senior officials said on Thursday.



Eskom, which generates more than 90% of the country’s electricity, is mired in financial crisis and suffers frequent breakdowns at its coal-fired power plants, forcing it to implement power cuts that have dented economic output.



Eskom’s problems have been a major concern among investors at industry conference the Mining Indaba this week.



“There is going to be a separate entity to Eskom, but the issue is not Eskom or no Eskom, the issue is security of energy supply,” Mineral Resources and Energy Minister Gwede Mantashe said on the sidelines of the conference in Cape Town.



Details surrounding the plan for the new generating company are still hazy.



Mantashe said he wanted industry to partner with the government on its formation, but it is not clear what that partnership would entail. It is also not clear which generating technologies it would employ.



Director-general in the Department of Mineral Resources, Thabo Mokoena, echoed Mantashe’s comment that the main aim of the new company would be to improve energy security but did not elaborate further.



Reporting by Tanisha Heiberg; Editing by Alexander Winning and Mark Potter

South Africa plans to create new generating firm to boost power security, what you need to know

JOHANNESBURG, Jan 6 (Reuters) &#8211; Eskom&#8217;s new chief executive took charge of the struggling state-owned utility on Monday, embarking on the mammoth task of fixing South Africa&#8217;s power deficit and restructuring a debt pile that has crippled the national economy.



Andre de Ruyter, appointed by President Cyril Ramaphosa in November, will oversee a government plan to split Eskom into three units for generation, transmission and distribution in an attempt to make it more efficient.



Ramaphosa is trying to revive growth in Africa&#8217;s most advanced economy and attract more investments. Eskom, which generates more than 90% of the country&#8217;s power, is widely regarded as the most serious risk to an economy on the brink of recession.



Saddled with unreliable coal-fired power stations, Eskom has struggled to meet the country&#8217;s power demand since 2007, with several bouts of severe power cuts since then. Outages last year dented economic output and shook investor confidence in Ramaphosa&#8217;s administration.



The country experienced further outages at the weekend, with Eskom cutting up to 2,000 megawatts (MW) from the national grid on Saturday and Sunday due to a shortage of generating capacity.



In a previous role as CEO of Nampak de Ruyter steered the packaging firm through financial difficulties, and part of his new brief is to restructure Eskom&#8217;s 450 billion rand ($31 billion) debt pile.



De Ruyter&#8217;s predecessor at Eskom, Phakamani Hadebe, stepped down in July, citing health reasons. Sources told Reuters at the time that another reason was that he felt frustrated at being excluded from important decisions affecting the utility.



Eskom said in a statement on Monday that roughly 13,000 megawatts (MW) of its 44,000 MW nominal capacity were offline because of plant breakdowns.



It said it didn&#8217;t expect &#8220;load-shedding &#8221; &#8211; a local term for power cuts &#8211; on Monday but that the system was &#8220;constrained and vulnerable&#8221;.



($1 = 14.3205 rand) 



(Reporting by Alexander Winning; editing by Olivia Kumwenda-Mtambo and John Stonestreet)

Eskom’s new CEO takes charge with power shake-up on agenda, what you need to know…

Press Release



We regret and sincerely apologise that stage 4 loadshedding will move to Stage 6 loadshedding as from 18:00 today, as a result of a shortage of capacity. This follows a technical problem at Medupi Power Station impacting additional generation supply. The heavy rains has caused coal handling and operational problems at several power stations.



We remind and assure customers that loadshedding at Stage 6 is no cause for alarm as the system is being effectively controlled. Stage 6, requires 6000MW to be rotationally loadshed.



Eskom&#8217;s emergency response command centre and technical teams will be working through the night to restore units as soon as possible. Eskom is working closely large industry to assist with further load curtailment.



Loadshedding is a responsible act and highly controlled process, implemented to protect the country from a national blackout.



After 2015, Eskom and the municipalities identified the need to extend the loadshedding stages up to stage 8 and the national code (NRS048-9 Ed 2) was subsequently updated.



Even beyond these schedules, the System Operator will reduce demand in a manner that is controlled.



Stage 6 loadshedding schedules are available on the Eskom website.



Eskom will keep you updated.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="669" height="960" src="https://www.cnbcafrica.com/wp-content/uploads/2019/12/Eskom-image.jpg" alt="" class="wp-image-351888" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2019/12/Eskom-image.jpg 669w, https://cms.cnbcafrica.com/wp-content/uploads/2019/12/Eskom-image-209x300.jpg 209w, https://cms.cnbcafrica.com/wp-content/uploads/2019/12/Eskom-image-293x420.jpg 293w" sizes="(max-width: 669px) 100vw, 669px" /></figure>

#LoadShedding: South Africa’s Eskom moves power cuts to Stage 6

JOHANNESBURG, Oct 22 (Reuters) &#8211; Crisis-hit South African power company Eskom was handed an additional 59 billion rand ($4 billion) lifeline by parliament on Tuesday, prompting criticism from opposition parties who described it as a &#8220;blank cheque&#8221;.



The special bill passed by parliament to grant the funding was first proposed by Finance Minister Tito Mboweni in July as Eskom struggled to service its ballooning 450 billion rand debt pile and keep the lights on throughout 2019 as its creaking fleet of coal-fired plants buckled.



Eskom unleashed another bout of nationwide blackouts last week following repeated power cuts in February and March, which dragged the economy into contraction.



Mboweni said in July that the bailout Eskom should adhere to strict conditions to receive the bailout, including assurance that it would be used only to service debt and not for operational costs.



The multi-party Standing Committee on Appropriation, responsible for oversight of the bill, failed to agree on the conditions and early in October opted leave the Finance Minister&#8217;s draft bill unchanged.



&#8220;The bill as it stands is a blank cheque that will blow up the deficit,&#8221; the main opposition Democratic Alliance said on Tuesday, echoing objections of other parties.



Speaking at the parliamentary debate on Tuesday Mboweni did not directly address the matter of conditions but hinted that Eskom&#8217;s management would come under closer scrutiny.



&#8220;One of the key issue we need to solve is to appoint the right people to run Eskom. Appoint the right board of directors and a competent management team,&#8221; he said.



&#8220;Then we must be in a position to hold that board of directors and management team accountable. The problem at Eskom is not just financial.&#8221;



Eskom has been without a permanent chief executive since Phakamani Hadebe resigned in May, citing unbearable pressure.



Hadebe was the 10th CEO in a decade to quit the state company in what has proved something of a revolving door of top executives and board members as treasury and presidential inquiries into graft and mismanagement deepened.



The special appropriation bill will go to parliament&#8217;s second house for approval before being sent to President Cyril Ramaphosa for his signature and enactment.



(Reporting by Mfuneko Toyana and Wendell Roelf Editing by David Goodman)

What you need to know about South Africa approving $4 billion bailout for debt-laden power utility Eskom

JOHANNESBURG, Oct 16 (Reuters) &#8211; South Africa&#8217;s rand tumbled more than 1% on Wednesday to its softest level in a week after state power utility Eskom said it would implement nationwide blackouts for the first time in more than six months due to capacity shortages.



The rand was 1% weaker at 15.0550 per dollar, its lowest since Oct. 10, as of 0615 GMT.



Eskom said it will cut up to 2,000 megawatts of power from the national grid on Wednesday due to a shortage of generating capacity, starting at 0700 GMT (9 am local time) and up until 2100 GMT.



The comments pushed the rand past the crucial 15.00 mark, with deeper losses likely as the session wears on, traders said.



Struggling state power firm 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.



&#8220;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,&#8221; said currency dealer at TreasuryOne Andre Botha.



&#8220;Any improvement (in sentiment) will depend on clarity we get from now on about what is happening. But there&#8217;s definitely negative risk across the board,&#8221; Botha said.



A debilitating round of power cuts in February and March pushed first-quarter economic growth into contraction and raised the likelihood of the country losing its last investment-grade rating.



Bonds also weakened, with the yield on the benchmark government paper due in 2026 up 3.5 basis points to 8.27%. 



(Reporting by Mfuneko Toyana, Editing by Sherry Jacob-Phillips)

South Africa’s rand takes a tumble as Eskom plans nationwide power cuts

HARARE (Reuters) &#8211; Zimbabwe has increased the average electricity tariff by 320% to let the state power utility ramp up production and improve supplies at a time of daily rolling power cuts, the national energy regulator said on Wednesday.



Power cuts lasting up to 18 hours have hit mines, industry and homes and, together with a devastating drought, have been cited by the treasury as among the main reasons why the economy is set to contract by up to 6% this year. 



However, the jump in power costs will further anger Zimbabwean citizens who have in the last week seen sharp rises in fuel and basic goods prices. Salaries have not kept pace, prompting citizens to blame President Emmerson Mnangagwa&#8217;s policies for the worst economic crisis in a decade.



The Zimbabwe Energy Regulatory Authority (ZERA) said it had approved an application by Zimbabwe Electricity Transmission and Distribution Company (ZETDC) to raise the tariff to 162.16 cents (10.61 U.S. cents) from 38.61 cents.



This was the second increase in three months, following one in August.



ZERA said the tariff hike was necessary after inflation soared &#8211; the IMF says it was about 300% in August &#8211; and due to a plummeting Zimbabwe dollar currency, which was re-introduced in June.



The new tariff would allow ZETDC to raise money to repair its generators, as well as pay for imports from South Africa&#8217;s Eskom and Mozambique which cost U.S. $19.5 million every month, the regulator said.



Hopes that Zimbabwe&#8217;s economy would quickly rebound under Mnangagwa, who took over after the late Robert Mugabe was deposed in a coup in November 2017, have faded fast as ordinary people grapple with soaring inflation which has eroded earnings and savings.



(Reporting by MacDonald Dzirutwe; Editing by Toby Chopra)

Here’s why Zimbabwe has quadrupled its electricity prices

JOHANNESBURG (Reuters) &#8211; South Africa&#8217;s mines and energy minister on Thursday said he was in talks with coal firms that supply struggling state-owned power utility Eskom to reduce coal prices in a bid to lower energy costs and boost the mining sector. 



Once the largest contributor to South Africa&#8217;s gross domestic product, mining has shrunk steadily over the last decade weighed down by higher energy costs and electricity cuts, hard-to-reach deposits, above inflation wage hikes and policy uncertainty which is deterring investment.



&#8220;These are discussions about how we reignite our economy and make it grow,&#8221; Mineral Resources and Energy Minister Gwede Mantashe said at an industry conference in Johannesburg without adding further detail. 



In March, energy regulator Nersa granted Eskom average tariff increases of 9.4%, 8.1% and 5.2% over the next three years.



The mining industry body, the Minerals Council, has said the tariff increase given to Eskom would jeopardise the viability of some marginal mines and accelerate job losses at energy-intensive operations.



Job cuts are politically sensitive in Africa&#8217;s most industrialised economy where a quarter of the labour force is unemployed, while power outages and steep price increases by Eskom are set to hurt an already fragile growth outlook.



Eskom owns and operates more than 13 coal-fired power stations and has supply agreements with firms including Exxaro Resources and South32 



The utility supplies more than 90% of the power in Africa&#8217;s most industrialised economy, but has been grappling with cashflow and high debt problems, breakdowns at its creaking coal-fired power station fleet.



The minister, who highlighted that power cuts and electricity prices remain a concern, said lowering energy costs would involve discussions with various groups in the sector including coal producers, renewable energy firms and the energy regulator. 



(Reporting by Tanisha Heiberg; editing by Emelia Sithole-Matarise)

What you need to know about S.African government’s talks with coal miners to cut prices for struggling power utility Eskom

JOHANNESBURG (Reuters) &#8211; South Africa’s state power utility Eskom urgently needs a turnaround plan as its capital structure is unsustainable, credit ratings agency Moody’s said on Tuesday in a report which sent the rand lower.



“The company’s operational and financial performance has deteriorated, indicating the extent of the challenges facing Eskom in meeting its debt obligations absent government support,” Moody’s said in a note.



Eskom reported a mammoth 20.7 billion rand ($1.39 billion) annual loss a week ago. [nL8N24V5CB]



($1 = 14.9196 rand)



Reporting by Alistair Smout; Editing by Jan Harvey

South Africa’s state power utility Eskom urgently needs turnaround plan – Moody’s

HARARE (Reuters) &#8211; Zimbabwe will ramp up its electricity imports over the next few weeks, potentially easing rolling power cuts, after it agreed to make payments to clear its debt to a regional power utility, a treasury official said on Monday. 



The southern African nation has endured 18-hour daily power cuts since May as a result of a prolonged drought that has reduced output at its largest hydro plant and ageing coal-fired generators that keep breaking down.



Foreign power companies also stopped supplying Zimbabwe with electricity in 2017 after the country failed to pay its bills, although Zimbabwe resumed limited imports of 300 MW a month last week.



George Guvamatanga, secretary for the ministry of finance, told business leaders in Harare that Zimbabwe had agreed to make weekly payments to clear its debt to a regional power utility, which would start providing at least 400 MW of electricity a month, starting from this week.



That would take total imports to 700 MW a month.



Guvamatanga did not name the supplier. Zimbabwe typically buys electricity from South Africa’s Eskom and Hydro Cahora Bassa of Mozambique.



Zimbabwe owes more than $70 million to Eskom and Hydro Cahora Bassa of Mozambique for past power supplies.



“I think the arrangement that we have put in place now on electricity should hopefully guarantee us increased supply from tomorrow or Wednesday,” Guvamatanga said.



“Working with the mining sector we have been able to ring-fence adequate resources to pay for at least 400 megawatts of electricity a month.”



Power shortages, along with drought and a severe dollar crunch, will result in the economy shrinking this year, the finance minister said last week.



Energy and Power Development Minister Fortune Chasi was in South Africa at the end of July to try negotiate for a power deal with Eskom. He did not immediately respond to calls and messages on his mobile phone on Monday.



Eskom, which is itself struggling to meet South Africa’s electricity needs, had no immediate comment.



The government said last week that power utility ZESA Holdings was accessing 300 MW during off-peak hours from the Southern African Power Pool, a regional industry collaboration linking up national grids.



Guvamatanga said for now Zimbabwe would have to rely on electricity imports, which required foreign currency that is in short supply.



Last week finance minister Mthuli Ncube announced a three-fold increase in electricity tariffs, as the government seeks to raise more funds for power generation.



Reporting by MacDonald Dzirutwe; Editing by Susan Fenton

Zimbabwe ramps up its electricity imports to ease outages

JOHANNESBURG (Reuters) &#8211; The group treasurer of South Africa’s Eskom, Andre Pillay, will leave the power utility at the end of August, it said on Monday, the latest high-profile exit after its chief executive quit earlier this year.



Eskom supplies more than 90% of South Africa’s electricity, but has implemented severe power cuts this year and is failing to generate sufficient profit.



It is hinging its recovery hopes on a 230 billion rand ($16 billion) bailout pledged by government in February.



Reporting by Mfuneko Toyana; Editing by Jan Harvey

Treasurer of South Africa’s Eskom quits, what you need to know

<figure>
 <img decoding="async" src="https://images.theconversation.com/files/277727/original/file-20190603-69055-139n8j4.jpg?ixlib=rb-1.1.0&#038;q=45&#038;auto=format&#038;w=754&#038;fit=clip" />
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 Aerial view of Kariba dam.
 Dmitriy Kandinskiy/Shutterstock
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<a href="https://theconversation.com/profiles/tafadzwa-makonese-750988">Tafadzwa Makonese</a>, <a href="http://theconversation.com/institutions/university-of-johannesburg-1275">University of Johannesburg</a>

Zimbabwe’s government has announced its facing critical power shortfalls. The country’s anchor power producer, Kariba Dam, might <a href="https://www.fin24.com/Economy/Africa/zimbabwe-to-approach-eskom-for-help-as-kariba-dam-levels-drop-20190603">have to stop</a> production in weeks due to dropping water levels. Tafadzwa Makonese spoke to Moina Spooner from The Conversation Africa about what can be done.

What are the main challenges facing Zimbabwe’s energy system?

Zimbabwe has a severe energy crisis because its major sources of electricity are struggling to keep up with demand. 

Kariba power plant dam – where Zimbabwe gets <a href="https://www.researchgate.net/publication/304021888_Renewable_energy_in_Zimbabwe">57% of its electricity</a> – has low water levels due to poor rains last year. At the moment the dam, which sits on the border of Zimbabwe and Zambia, is producing <a href="https://www.thesouthafrican.com/news/zimbabwe-darkness-eight-to-ten-hour-load-shedding/">just 34%</a> of what it usually can. If Kariba stopped producing Zimbabwe would <a href="https://www.fin24.com/Economy/World/power-production-on-the-verge-of-shutdown-at-zims-kariba-dam-20190531">lose about 358 MW daily</a>, that’s about 300 000 homes without power. 

On top of this, Hwange colliery – which provides <a href="https://www.bloomberg.com/news/articles/2018-07-02/hwange-of-zimbabwe-coal-output-to-surge-on-underground-mining">almost all</a> of Zimbabwe’s coal for power generation – is producing less <a href="https://www.fin24.com/Economy/World/power-production-on-the-verge-of-shutdown-at-zims-kariba-dam-20190531">because of</a> old and deteriorating infrastructure. 

Currently Zimbabwe <a href="https://af.reuters.com/article/africaTech/idAFL8N237276">produces</a> 1100 MW of power against a national demand of 1500 MW. This leaves a supply gap of 400 MW. The deficit is catered for <a href="https://www.fin24.com/Economy/zim-looks-to-sas-eskom-to-help-stave-off-load-shedding-20190512">by imports</a> from Mozambique and South Africa. 

But payments for these imports aren’t easy to keep up with. For the past 10 years Zimbabwe has been going through a <a href="https://world-news-monitor.com/money/finance/2019/05/31/zimbabwe-strikes-imf-deal-to-boost-new-currency/">currency crisis</a> caused by hyperinflation. This has severely eroded the power of local currency, leaving the Zimbabwe Electricity Supply Authority in a financial quagmire. They <a href="https://www.fin24.com/Economy/Africa/zimbabwe-to-approach-eskom-for-help-as-kariba-dam-levels-drop-20190603">currently owe</a> Eskom, South Africa’s power utility, over $33million.

Because of these challenges, any drop in national production means the government has to ration electricity. The government recently started a load shedding plan <a href="https://www.thesouthafrican.com/news/zimbabwe-darkness-eight-to-ten-hour-load-shedding/">to prevent</a> the collapse of the country’s power grid.

What are the short to medium term solutions?

One short-term solution could be small solar power systems that are rolled out while the government works to improve national power generation through additional hydropower plants, solar and wind farms. 

Small solar systems are an effective source of electricity in off-grid communities or they could be set up as mini-grids in communities that constantly suffer from power-cuts. Zimbabwe <a href="https://www.sciencedirect.com/science/article/pii/S0973082614000787">has enough</a> solar power to support these.

These solar systems could be made cheaper through the introduction of subsidies and tax incentives. Even better, the government could waive taxes on all certified systems coming into the country. 

And more needs to be done to publicise the use of gas in urban and rural households. Gas is underused in Zimbabwe, partly because it is more expensive compared to other energy sources including kerosene. The government could look for investments through private partnerships to build gas mines. Zimbabwe <a href="https://www.herald.co.zw/zim-to-set-up-own-gas-mines/">has over 40 trillion</a> cubic feet of potentially recoverable methane gas in the Lupane-Lubimbi area. Considering the cost of building infrastructure to transport the gas from the production sites, it would be significantly cheaper to exploit these than to import from Mozambique. 

Industries that need to cope with power cuts should turn to energy storage. In Johannesburg, South Africa, some industries <a href="https://www.engineeringnews.co.za/article/energy-storage-a-viable-solution-to-load-shedding-2019-04-05">have integrated</a> energy storage into their micro-grids – the solar energy <a href="https://www.altenergymag.com/article/2019/02/energy-storage-microgrids/30388/">is stored</a> in batteries that are used when the grid fails. 

Are there experiences from other countries, in fixing a dilapidated electricity system, that Zimbabwe can draw lessons from?

Nepal and Bangladesh are good examples. 

In 2014 Nepal was experiencing up to 12 hours of power cuts for the residential and industrial sector. This was <a href="https://kathmandupost.ekantipur.com/news/2018-05-14/entire-country-is-now-free-of-loadshedding.html">finally stopped</a> in 2017. Nepal invested heavily in run-of-the-river micro-hydropower plants. These are hydroelectric systems that harvest the energy from flowing water to generate electricity in the absence of a large dam and reservoir – as opposed to conventional hydroelectric power plants which rely on the power of water falling a large distance. 

It all paid off when water levels in major rivers rose and power could be generated. By 2018 the country <a href="https://www.intechopen.com/books/renewable-hydropower-technologies/hydropower-development-in-nepal-climate-change-impacts-and-implications">produced</a> 1000 MW from 782 MW in 2016.

Zimbabwe relied heavily on the Kariba Dam power station, without establishing more hydropower plants elsewhere. It <a href="https://www.sciencedirect.com/science/article/pii/S1876610217354486">has huge</a> small-hydro potential. 

Bangladesh meanwhile shows how energy-saving behaviour – like turning off lights in unused rooms, use of solar water geysers, and use of energy efficient home appliances – under its national energy efficiency and conservation master plan <a href="https://link.springer.com/article/10.1007/s40095-019-0302-3">reduced demand</a> by up to 51%.<img loading="lazy" decoding="async" src="https://counter.theconversation.com/content/118209/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important" />

<a href="https://theconversation.com/profiles/tafadzwa-makonese-750988">Tafadzwa Makonese</a>, Senior Research Fellow, Sustainable Energy Technology and Research Centre, <a href="http://theconversation.com/institutions/university-of-johannesburg-1275">University of Johannesburg</a>

This article is republished from <a href="http://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/quick-fix-solutions-to-zimbabwes-huge-electricity-crisis-118209">original article</a>.

What are the short-term solutions to Zimbabwe’s huge electricity crisis ?

HARARA (Reuters) &#8211; Zimbabwe’s state power utility imposed the worst rolling blackouts in three years on Monday, with households and industries including mines set to be without electricity for up to eight hours daily.



The power cuts are bound to stoke mounting public anger against President Emmerson Mnangagwa’s government as Zimbabweans grapple with an economic crisis that has seen shortages of U.S. dollars, fuel, food and medicines as well as soaring inflation that is eroding earnings and savings.



Many Zimbabweans say life is getting harder and that Mnangagwa is failing to deliver on pre-election promises last year to rebuild an economy shattered during Robert Mugabe’s 37-year rule.



The Zimbabwe Electricity Transmission and Distribution Company (ZETDC), citing reduced output at its largest hydro plant and ageing coal-fired generators, said power cuts would start on Monday and last up to eight hours during morning and evening peak periods.



The country last experienced such serious blackouts in 2016 following a devastating drought.



Isaac Kwesu, chief executive of Chamber of Mines, which groups Zimbabwe’s biggest mining companies said critical industries like mining should be spared from the black-outs, locally known as load shedding.



“Mining requires electricity for both operations and safety. It will be very costly to have production stoppages, that is why we will be engaging ZETDC to find ways to minimize any costly disruptions due to the electricity cuts,” Kwesu told Reuters.



Mining accounted for more than two-thirds of Zimbabwe’s $4.8 billion in total export earnings last year and any power cuts in the sector will affect production and exports.



In the past, some of the big mines, including platinum and gold producers, have resorted to directly importing electricity from neighbouring countries like Mozambique and South Africa.



“The power shortfall is being managed through load shedding in order to balance the power supply available and the demand,” ZETDC said in a public notice.



Zimbabwe is also experiencing shortages of fuel, forcing motorists to queue for hours and the government has so far failed to deliver on previous promises to end the shortage.



The southern African nation, which is producing 969 MW daily against peak demand of 2,100 MW, is entering its peak winter power demand season, which will increase electricity consumption.



Energy and Power Development Minister Joram Gumbo was quoted by a local newspaper saying he would travel to Mozambique this week to try to agree an electricity supply deal with that country’s power utility Hydro Cahora Bassa.



Reporting by MacDonald Dzirutwe; editing by Emelia Sithole-Matarise

Here’s why Zimbabwe faces worst power cuts in 3 years

By Chris Bishop.
Business and households were given a pre-Christmas shock with a frank disclosure of the ruin of Africa’s biggest power generator amid claims of sabotage, corruption and decay where those who try to fix it are swept aside or forced out of their jobs. The only crumb of comfort is that the government promises to shake up South Africa’s power generator Eskom and has cancelled their Christmas holidays for its senior executives so they can tour the ageing power stations of the country to find out what is wrong.
“We have reshuffles in cabinet we are going to be reshuffles here as well,” says Pravin Gordhan, the public enterprises minister.
Gordhan and Eskom chairman Jabu Mabuza were called back from a road show for an emergency press conference at Eskom’s Megawatt Park in Sandton, Johannesburg. They painted a bleak picture of the failing national grid, supplied by Eskom, that has left many businesses and homes in the dark over the last few months. The grid of 47,000 MW is running on a mere 29,000 MW because of maintenance and breakdowns in the ageing power stations on the country, most of which were built in the 1970s. Eskom didn’t even know where the next break will be, he said.
“For business, we want to ensure by the time you get back to work in January we have a better situation,” says Gordhan.
But Gordhan acknowledged it was likely to be a grim fight against years of corruption and decay that has seen the pride of Africa’s power generation reduced to a load shedding shell.
“There has been declining production, the growing need for repairs, the lack of attention, we are not sure yet whether there is an undermining of the system, as well, let’s call it sabotage,” he says.
“Some of the problems can be ascribed to the age of the plant, but from about 2010 the investment in maintaining, repairing and big scale repairs were not done adequately. Enough money was not put into big repairs and mid-term repairs.” 
“ Often things were fixed with a very lousy old band aid supposed to last a week that comes unstuck in a few days, then you haven’t fixed it .We are looking at contactors not doing what they were supposed to do.”
Experts in Eskom who tried to fix the mess were either swept aside or forced to leave, Gordhan said.
The minister even admitted that his department was also a step behind what was going on at Eskom. It had merely on energy expert.
“The public was told we have a world class operation, but in the meantime all the malfeasance and mismanagment has gone on,” says Gordhan.
Eskom hopes to report back within ten days and plans to set up a team of experts to assess the damage to the power generation system.

Lights out, game on- No Christmas of rest and turkey for the bosses in a dingy tale of decay

JOHANNESBURG (Reuters) &#8211; South Africa faces more power cuts, electricity utility Eskom warned on Monday as it sought to prevent the collapse of its power grid in a test for President Cyril Ramaphosa’s reforms.
Eskom implemented a fifth day of controlled power cuts on Monday, putting more strain on an economy already mired in recession only months before a national election.
“The entire week could be severely constrained if we are unable to replenish the diesel and water reserves, and reduce the high unplanned outages,” Eskom spokesman Khulu Phasiwe said.
Eskom, which is battling a severe financial crisis, coal shortages and breakdowns of its power plants, said it would cut up to 2,000 megawatts of power from the grid on Monday.
The utility, which last week called for a bailout or debt relief, began the controlled cuts, known as load-shedding, on Thursday as demand for power outstripped available capacity.
“Eskom teams are working hard to salvage the situation but the process is going to be hard, long and costly,” Phasiwe said.
Ramaphosa has made reforming Eskom a priority, but he has been hampered by fiscal constraints in a blow to his plan to woo investors who can help grow the economy ahead of an election likely to be held in May next year. nL8N1X61GL]
“Eskom as an institution and its ability to provide stable power supply is the single biggest risk to @CyrilRamaphosa’s investment drive and the South Africa fiscus,” Isaah Mhlanga, executive chief economist at Alexander Forbes Investments said on Twitter.
BNP Paribas South Africa senior economist Jeff Schultz said prolonged power cuts would likely hurt economic growth in the first quarter of 2019, although a slowdown in manufacturing over the Christmas period will buy Eskom some time.
“But come mid-January, if we are still facing load-shedding, that is when it is going to be a much more pressing issue for the economy,” Schultz said.
South Africa entered recession in the second quarter for the first time since 2009. Third-quarter gross domestic product numbers are due out on Tuesday, with analysts polled by Reuters predicting quarter-on-quarter GDP growth of 1.6 percent.
($1 = 13.6396 rand)
Editing by James Macharia and Alexander Smith

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