Power Promise Keeps SA On Edge of Seat - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
May 26, 2010 Newswires
Share
Share
Post
Email

Power Promise Keeps SA On Edge of Seat

IF THERE is one thing that can turn the World Cup euphoria that has engulfed SA into despair, it is power interruption.

If that happens, no number of explanations will restore the reputational damage to SA. Valid questions have been asked about the country's ability to ensure security of electricity supply. Since the 2008 power problems, Eskom has been on the receiving end of public ridicule. Think "Eishkom" and those dinner-table mutterings about a bunch of incompetents who have no idea what they are doing. If Eskom get it wrong in the next month, they will have earned whatever expletives come their way.

The nervousness about our ability to ensure reliable power is neither alarmist nor misplaced. Just over two years ago, the country was flirting with nationwide blackouts, forcing major industries such as mining to cut back on production.

Secondly, the World Cup will be held in winter, a time when SA's power consumption spikes, straining the power grid.

Eskom has said that the reserve margin or reserve capacity, which is the difference between available capacity and peak demand - is at relatively low levels. So the country needs an assurance that everything will be fine.

Eskom has said that it has its ducks in a row. It says its preparations for the soccer tournament included the identification of potential risks and, to address this, it has been in close liaison with key government departments, municipalities and its neighbouring countries who are part of the Southern African Power Pool community.

A 2010 Electricity Supply Industry Forum has been established. Members of the forum include Eskom, municipalities, the National Energy Regulator of SA (Nersa), the Department of Energy, the 2010 local organising committee, EDI Holdings and the Treasury. Eskom says infrastructure that has been put in place as part of the collaborative initiative was tested between February and this month. "Results are overwhelmingly positive and any shortcomings or oversights are immediately addressed," Eskom said.

In addition to that, there are regional task teams for all World Cup host cities. These teams focus on, among other things, network capacity requirements, maintenance scheduling, equipment reliability, risk management and integrity improvement.

On Monday, Eskom took a group of journalists on a tour of its national control centre, a hub that matches electricity demand with supply. This nerve centre ensures that enough power is being generated to meet demand.

When demand exceeds supply, it is people at this centre who look for other sources of electricity, such as peaking power stations, which are only run when there is high demand for electricity.

Detailing its readiness for the World Cup, Erica Johnson, Eskom chief officer for customer network business, this week gave the impression of an entity that has done extensive preparatory work, complete with back-up plans.

Eskom has come in for glowing praise from Korean Electricity Power Corporation, the electricity utility that hosted the 2002 World Cup in Korea and Japan. In an audit report that looked at Eskom's readiness for the event, the corporation says Eskom is ready to provide reliable power supply to key facilities during the soccer spectacle. "Eskom's readiness and preparedness in reliable power supply for 2010 World Cup was admirable and comparable to all countries that have held this prestigious event."

Johnson says Eskom anticipates an increase of 275MW in electricity consumption during the tournament. This, she says, is based on studies conducted in Germany at the last World Cup.

Eskom says it expects peak demand for electricity during winter to be 37240 MW. It says its generation capacity of 42000MW, which includes imports mainly from Mozambique's Cahora Bassa Dam, will be sufficient to power the Cup.

Eskom can import as much as 1500MW from Mozambique. It can also import another 150MW from the Democratic Republic of Congo. "If required, we can run our open- cycle gas turbines ."

Eskom says load forecasts assume further recovery in the economy. During the summer there are enough generation resources to meet demand.

Eskom says it will conduct only critical maintenance on its generation plants and infrastructure. Johnson says there are enough coal stockpiles at Eskom's power stations and adequate on- and off-site storage of diesel for gas turbines.

Advisor News

  • How much could failure to fund Social Security cost average Americans?
  • How can more Americans achieve financial independence?
  • Savers vs. spenders: How money management attitudes impact financial confidence
  • Demonstrating the value of life insurance to Gen Z
  • Poor money habits are a dealbreaker in a new relationship
More Advisor News

Annuity News

  • Canvas steps into the direct-to-consumer market that has yet to take off
  • The next growth phase in life/annuities depends on modernization
  • CA judge certifies class action in teachers’ lawsuit over in-plan annuity fees
  • Globe Life Inc. (NYSE: GL) Records 52-Week High Thursday Morning
  • AM Best Managing Director Joins ‘Target Topics’ Podcast to Discuss State of Delegated Underwriting Authority Enterprises Market
More Annuity News

Health/Employee Benefits News

  • Gov. Stitt names OHCA interim director
  • Iowa health insurers propose premium increases for ACA customers
  • Atrium pushes back after State Health Plan leaves healthcare network out of Tier 1
  • BUILDING A COMPETITIVE BENEFITS PACKAGE IN 7 EASY WAYS
  • People with this Medicare plan could soon go out-of-network at UHealth hospitals
More Health/Employee Benefits News

Life Insurance News

  • USAA introduces Secure Start whole life program for children
  • Best’s Market Segment Report: AM Best Maintains Stable Outlook on South Korea’s Non-Life Insurance Market
  • Horace Mann Strengthens Customer Relationships and Accelerates Long-Term Growth Through Transactions with Medical Mutual of Ohio
  • Regulators: ‘No firm conclusions’ from first offshore reinsurance filings
  • Allianz Life Study Finds Americans Struggle to Shift From Retirement Saving to Spending
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Prosperity Life GroupSM Launches Prosperity PathWaySM Series, Bringing Greater Choice and Flexibility to Retirement Income Planning
  • Senior Market Sales® Fortifies Annuity Reach With Acquisition of Retirement Planning Firm Stratton & Company
  • RFP #T01625
  • Rockwood Programs Appoints Kerry Ladouceur as Vice President, Financial Lines
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet