The Herald (South Africa)

Eskom in domestic priority vow

Utility explains Africa power deals as it denies any secret agreement with Zimbabwe

- Business Staff

POWER utility Eskom issued an assurance yesterday that its electricit­y agreements with other African countries would not affect its primary commitment to the domestic market.

It also denied that it was involved with any undercover deal with Zimbabwe.

Eskom was commenting on reports in Zimbabwe that the utility had entered into a secret agreement to sell 300MW of electricit­y to its neighbour.

The media reports also quoted Zimbabwe’s Energy and Power Developmen­t Ministry permanent secretary Partson Mbiriri as saying the deal had to be kept under wraps “for security reasons”.

Eskom confirmed the sale of power to Zimbabwe‚ but said “there is no secrecy”.

It was part of a power supply agreement with the Zimbabwe Electricit­y Supply Authority (Zesa).

This deal was part of an arrangemen­t among southern African utilities to sell surplus electricit­y to each other.

Of the deals, Eskom said: “We are aware that our responsibi­lities to supply our neighbouri­ng countries may create an apparent conflict when the domestic supply-demand bal- ance is constraine­d.”

It said that “to reduce the impact of exports‚ we have ensured that power supply agreements with SAPP trading partners are sufficient­ly flexible” to allow for controls during emergency situations in South Africa.

Eskom also used the opportunit­y of the secrecy denial to explain its agreements.

These include Eskom and Zesa being part of the Southern African Power Pool (SAPP).

Through this, utilities in the power pool sold surplus electricit­y to each other depending on the need.

“South Africa‚ through Eskom‚ has been involved in the electricit­y sector in various countries in Africa for a long time and has utilised different forms of engagement­s,” it said.

“This has been done mainly through bilateral trading ar- rangements‚ using instrument­s such as power purchase and power sales agreements.

“Eskom is also committed to ongoing participat­ion in the Southern African Developmen­t Community [SADC] region through SAPP as an institutio­n.

“SAPP is made up of SA‚ Botswana‚ Lesotho‚ Mozambique‚ Namibia‚ Swaziland‚ Zambia and Zimbabwe‚ connected through an integrated grid‚” Eskom said.

The utility went into detail about its involvemen­t in various power agreements in the rest of Africa.

“Participat­ion in East and West Africa [Uganda and Mali respective­ly] has been undertaken through long-term operating and maintenanc­e concession agreements.”

These involved the De Cahora Bassa hydroelect­ric scheme in Mozambique‚ as well as a transmissi­on arrangemen­t that connected Zimbabwe‚ Botswana and South Africa.

In turn, this opened up the flow of electricit­y as far as the Democratic Republic of Congo and Namibia, Eskom said.

Its strategy also involved creating the Southern African Energy Unit‚ through which South Africa imported electricit­y from Lesotho‚ Mozambique and Namibia‚ and sold electricit­y to Botswana‚ Lesotho‚ Mozambique‚ Namibia‚ Swaziland‚ Zambia and Zimbabwe.

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