22 January 2008

Since Eskom’s announcement that it will be reducing exports to neighbouring countries, NamPower has been inundated with enquiries about the future outlook of power supply in Namibia.

Electricity has become an integral part of our daily lives, particularly for those living in urban areas, that it is almost impossible to imagine life without electricity. Production of goods and services is dependent on availability of reliable electricity supply. Against this background we thought it appropriate to inform the public by highlighting the following facts regarding the power supply situation:

• Eskom is indispensable in the regional power supply equation. It is responsible for over 80% of generation in the region and it is understandable that supply problems in RSA will spill over to trading partners.
• In 2006 NamPower has entered into a bilateral power supply agreement with Eskom. This agreement, like many other commercial agreements, guarantees availability of power when the supplier has sufficient capacity.
• The agreement also makes provision for both normal and abnormal supply scenarios. As you might be aware the shortage of power supply is a regional problem which affects all countries in the region.The region has entered into an abnormal supply scenario and the agreement makes provision for the framework in which the contracting parties have to manage any eventuality including an abnormal situation like this.
• Eskom’s reduction of exports to neighbouring countries including Namibia does not constitute a breach of the agreement.
• This situation was anticipated by NamPower hence the signing of numerous other PPAs, besides Eskom, in an attempt to augment power supply shortages. These 3rd party imports yield an average capacity of 100MW.
• We have put in place measures to minimise the impacts of the reduced imports. These measures include the introduction of Demand Side Management and the optimisation of own generation. The former includes Demand Market Participation (DMP), load shedding (voluntary and forced), introduction of time of use tariff and general load shifting. At this juncture it is worth pointing out that we are in constant communication with our large customers and distributors. We promise to inform our clients well in advance of load shedding schedules in the event of planned load shedding. In cases where system stability is under threat as a result of loss of supply we will have no other option than to implement forced load shedding.
• Our strategic resolve as utilities in the SAPP is to take a collective approach to problems affecting the region. We therefore have no reason to believe that we will not continue to manage this critical situation.

The next three years will be critical as regional demand has outstripped the available supply. NamPower appeals to its customers and the public at large to reduce their electricity usage by about 20% to minimise load shedding. With this assistance from our big customers and the implementation of a Demand Market Participation, NamPower will ensure that power interruptions are kept to a minimum.

Here I would especially like to call upon the media to continue with the awareness campaign and keep on informing their readers not to waste this precious product. We have to change our attitude. Conservation of energy has to become a way of life.