Load shedding in 2007/08 cost economy estimated R50bn

A report by the National Energy Regulator of South Africa (Nersa) estimated that load shedding between November 1, 2007, to January 31, 2008, cost the country’s economy R50 billion.

Adv Maleka reads parts of the Nersa report on Loadshedding which explains what caused Loadshedding in 2008. According to the report loadshedding caused the country's economy R50 billion. #StateCaptureInquiry

— State Capture Commission (@StateCaptureCom) February 20, 2019

The report, released in 2008, was tabled before the commission of inquiry into state capture by evidence leader advocate Isaac Maleka and will, along with a number of other reports, be used during the course of the commission conducting its inquiry into allegations of state capture at Eskom.

Nersa resolved to conduct a probe into the power utility after the country experienced load shedding from November 2007 to January 2008, attracting national attention.

The regulator’s report revealed that five incidents of load shedding occurred in November 2007, four in December that year, with January 2008 seeing the most incidents numbered at 14, which, the report states, was due to an increase in demand following the festive period of 2007.

The report further revealed that 4,000 megawatts were shed on January 24 2008.

Nersa recommended that Eskom should prioritise corrective measures to avoid the consequences and the impact load shedding has on the country’s economy.

Maleka says Nersa made recommendations targeted at specific departments at the Eskom. Not enough was done. #StateCaptureInquiry

— State Capture Commission (@StateCaptureCom) February 20, 2019

The chairperson of the commission, deputy chief justice Raymond Zondo, recalled that the executive arm of the country’s government admitted at the time that it had been warned eight years earlier that if certain things were not done then load shedding would occur.

Maleka said when the power utility’s chairperson appears before the commission, issues around load shedding, considering its recent resurgence, will be raised, with the key question being what other options consumers have in light of load shedding.

The utility’s chair, Jabu Mabuza, is expected to appear before the commission on Friday and Monday, January 25.

Maleka says the commission has received the statement of Eskom Board Chairperson Jabu Mabuza. He is expected to give testimony on Friday and Monday. #StateCaptureInquiry

— State Capture Commission (@StateCaptureCom) February 20, 2019

Another report that Maleka tabled at the commission resulted from the Denton investigation into Eskom.

The Dentons investigation was commissioned by the Eskom board. It appears that Dentons investigation was halted halfway after the draft report was presented to the Board. Maleka says the report is vital to the commissions' investigation into Eskom. #StateCaptureInquiry

— State Capture Commission (@StateCaptureCom) February 20, 2019

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