Eskom says that it will be forced to implement load shedding\u00a0 from 5pm to 10pm on Tuesday evening (3 February).<\/p>\n
“The power system remains constrained and stage one load shedding will be implemented from 17h00 to 22h00 tonight,” the power utility said in a statement.<\/p>\n
Eskom had earlier on Tuesday morning aborted a planned stage one power cut amid a significant decrease in electricity demand.<\/p>\n
\u201cEskom did not implement load shedding at 10am as the electricity demand decreased significantly, since the early warning notification,\u201d the group said.<\/p>\n
\u201cSystem remains tight & should any unexpected change in demand \/ with our generating plant occur it may increase possibility of load shedding,\u201d it said.<\/p>\n
Earlier, spokesman Khulu Phasiwe said that the group would be forced to\u00a0implement stage one load shedding from 10am to 10pm, due to a severely constrained system.<\/p>\n
Phasiwe said the power cuts could end earlier if consumers used electricity sparingly.<\/p>\n
The power grid was under pressure on Monday after one of Koeberg\u2019s units \u2014 which produces 900MW \u2014 was taken out of service because of a technical fault.<\/p>\n
Phasiwe said the unit was still down on Tuesday.<\/p>\n
\u201cWe are trying to sync it into service. It will take a few days but it should be online soon.\u201d<\/p>\n
Meanwhile, Moody\u2019s Investors Service said on Tuesday, that beyond a large increase in tariffs, a material improvement in Eskom\u2019s financial profile is not expected before new generation capacity comes on stream.<\/p>\n
\u201cWeak operational performance combined with insufficient tariffs and a large capex [capital expenditure] programme continue to weigh on the company\u2019s financial profile,\u201d said Paul Marty, vice president-senior analyst, in an issuer comment.<\/p>\n
\u201cAbsent a substantial increase in tariffs beyond what is already planned for the remainder of MYPD3, Moody\u2019s does not anticipate a material improvement in Eskom\u2019s financial profile before new generation capacity comes on stream.\u201d<\/p>\n
The agency expected Eskom\u2019s credit metrics to remain very weak in the next 12 to 18 months.<\/p>\n
This was compounded by South Africa\u2019s slowing macro-economic environment, in turn partly driven by Eskom\u2019s problems.<\/p>\n
Marty said the agency\u2019s Ba1 rating of Eskom was due to the parastatal\u2019s weak operational performance and stretched financial profile, and Moody\u2019s expectation of high government support.<\/p>\n
Government help Eskom had received in the past included the R350 billion guarantee framework agreement, a subordinated loan of R60 billion, and a package of solutions announced in September 2014, which included an equity injection of at least R20 billion.<\/p>\n
\u201cThe government announced in January 2015 that the first R10 billion tranche would be injected before June 2015,\u201d Marty said.<\/p>\n