Fourteen years and counting. The power crisis has deepened and South Africans may need to literally celebrate Christmas by candlelight this year.
Eskom is battling much bigger headaches than what are necessitating Stage 2 load shedding this whole week. The power utility warned yesterday afternoon that it could not rule out higher stages of load shedding as the country battles a 1,000MW loss of imported power from Cahora Bassa due to a major incident in Zambia and problems at the Tutuka, Lethabo and Majuba power stations. And then there’s the high usage of OCGTs resulting in limited available diesel stock.
For energy analyst Chris Yelland our dark situation will just get worse with one of Koeberg’s units set to be taken off-line for five months in January. “When that unit is returned to service, it will be the turn of the other one. This means that generating capacity of about 900MW won’t be available for most of next year,” Yelland told CIty Press. And News24 reports that Tenova Mining and Minerals SA has stopped critical work on Kusile’s conveyor belts following a contractual dispute with Eskom, stoking fears of even longer-term load shedding.
Meanwhile, small businesses are feeling the brunt of the continued power cuts. According to some estimates, each stage of Eskom’s load shedding costs the country around R1bn per day.
It will be interesting to see what Finance Minister Enoch Godongwana presents in his first mini budget this week with the power sword hanging over his head.
In the markets, the rand broke below the key R15-level to the US dollar as it continued its march firmer after Friday’s strong run as both the Fed and Bank of England maintained a dovish stance. “Risk appetite has grown, and EM currencies are on the front foot. A sustained break of the R15.00 level will bring the R14.85 target into play. This week we have Finance Minister Enoch Godongwana’s MTBPS to look forward to,” comments TreasuryONE.
The improved risk sentiment also saw metal prices continue their climb from Friday’s firm close, with gold currently higher at $1,820, platinum up at $1,051 and palladium stronger at $2,056.
And in the crypto markets, the value of bitcoin passed the R1m milestone on South African cryptocurrency exchanges Luno, Valr and AltCoinTrader in the early hours this morning. It comes as the price of bitcoin surged overnight from under $62,000 to over $65,500 on dollar-denominated exchanges.
Here’s a roundup of the world’s top and most interesting headlines:
SA Business
More South Africans are quitting their jobs – and experts warn it’s a ticking time bomb – BusinessTech
Mark Cutifani’s amazing journey at Anglo American – Daily Maverick
Why South Africans are holding onto their cars right now – BusinessTech
Global Business
Elon Musk faces a $15 billion tax bill, which is likely the real reason he’s selling stock – CNBC
Sydney Airport agrees to $17.5bn buyout deal – BBC News
Mobile payments firm Paytm kicks off India’s biggest IPO – AFP
Markets
Asian markets mixed as inflation plays against recovery optimism – AFP
Gold up, boosted by retreating dollar – Investing.com
Crypto rally lifts ether to new record, bitcoin to near 3-week high – Reuters
Opinion/In-depth
The World Bank and IMF are using flawed logic in their quest to do away with the informal sector – The Conversation
Heatpocrisy: The ‘mining ban’ exposing Antarctica to Big Oil’s blind ambition – Daily Maverick
What Nutella teaches us about global supply chain risks – Bloomberg
Video
Is India The Next China? – Bloomberg
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