Monday, October 12, 2009

South Africa plans to recover and grow even if the lights don't stay on

SHOOT: So if we can't guarantee the lights staying on, we think we can still pursue internet technologies and we expect companies to still make money. Interesting idea. Maybe when the power cuts happen they'll grow fruits and vegetables in office space, and some new shrub we haven't seen yet, that has money for leaves. Hopefully it has been genetically engineered to grow in the dark.
clipped from

Cape Town - Eskom bosses told Parliament on Tuesday the company was still battling dire coal supply shortages and cash flow problems which demanded further tariff increases in coming years.

"It is still an issue which in the long-term we have to resolve. This dependence on coal can put the future stability of our economy at risk."

Eskom revealed on Friday that from 2007 coal prices and supply became a problem and that in the long-term the company did not have enough mines to supply it.

Though it now has 40 days of supplies, it acknowledged it has not recovered losses from reneging contractors and that an upturn in the economy, accompanied with higher prices, would put it under renewed strain.

Maroga said the cost of "keeping the lights" on despite shortages last year was clearly reflected in the company's balance sheet, which shows a loss of R9.5bn.

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