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Question 279: Mr K A Sinclair (COPE-NC) to ask the Minister of Public Enterprises

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Question 279: Mr K A Sinclair (COPE-NC) to ask the Minister of Public Enterprises
29/06/2013

 

(1) Whether his department’s decision to divert power from a certain company (name furnished) whenever the demand exceeds the capacity will be universally applied to similar entities; if not, why not; if so, what are the relevant details;

(2) whether this is as a result of the issues of contractual pressure on the cheaper preferential tariffs that are preferred to the said company; if not, (a) what is the position in this regard and (b) what is the nature of the agreement that Eskom has with the said company; if so, what are the relevant details in each case?    CW376E:

Reply:

(1) It is not the department’s decision to divert power from the company referred to. In order to manage the constrained power system, Eskom has to use a combination of demand and supply side options to manage the power system. This includes the option of interrupting for a limited number of hours each week several high energy users including the company referred to in terms of the current contractual provisions with these entities. 

(2)(a) The interruption of supply to this customer for a limited number of hours each week is in accordance with the provisions of the contract Eskom has with the said company as a big energy user.

(b) Eskom has a special pricing agreement only with the company referred to, whereby the tariff is linked to aluminum and rand-dollar fluctuations, whereas other customers are on a standard tariff. In all the above instances, due to the commercial nature of the contract between Eskom and the relevant companies, Eskom is unable to share the details of the contracts.


The special pricing agreements include a provision for interruption of supply, with no financial compensation, to protect the stability of the electricity network.

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