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NamPower says Eskom is not in breach of contract |
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Written by Staff Reporters
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Page 1 of 2
Namibia’s
power utility NamPower, which renewed a five-year power purchase agreement with
South Africa’s Eskom in 2006, was this week saying that the South African
utility was not in breach of contract by pulling the plug on electricity
exports to neighbouring countries.
NamPower Managing Director Paulinus
Shilamba told journalists on Tuesday that the agreement guaranteed the
availability of power when the supplier, Eskom, had sufficient capacity and
also made provisions for both normal and abnormal supply scenarios.
“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,” said Shilamba.
He added, “Eskom’s reduction of exports to
neighbouring countries including Namibia does not constitute a breach of the
agreement.”
Namibia, which requires about 400 megawatts
of electricity during peak hours, imports 45 percent of its energy requirements
from South Africa’s Eskom.
Shilamba, who described Eskom as an indispensable
regional power supplier, said NamPower was introducing voluntary and forced
load shedding, time of use tariff and general load shifting, in efforts to
reduce electricity usage by about 20 percent in the face of reduced supplies
from Eskom.
He said NamPower had long anticipated the
reduction of supplies from South Africa and hence it had signed other power
purchase agreements with other countries including one controversially signed
with Zimbabwe that has generated a tidal wave of negative publicity.
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