South African Property News

Power Shortage Not to Affect New Developments

An article by Luyanda Makapela in BuaNews reports that concern over electricity supply shortages and the proposed moratorium on new property developments is somewhat unfounded, according to Housing Minister Lindiwe Sisulu. The Minister has reassured South Africans that any new residential property developments requiring less than 100KW and low-income housing projects will not be affected.

This follows concerns raised by the Banking Association of South Africa (BASA) that suggested perceptions created by Eskom’s announcement of a moratorium last month could have a negative effect on all future housing developments. Ms Sisulu is quoted as saying, “The power supply challenges cannot be allowed to affect housing delivery to South Africa’s poor and government’s commitment to improve the living conditions of its citizens”.

The Minister of Housing met with Minister of Minerals and Energy, Buyelwa Sonjica and Minister of Public Enterprises, Alec Erwin in a bid to put to rest the concerns raised by BASA. Department spokesperson, Marianne Merten reports that, “Minister Sisulu wants to again confirm that government is committed to ensure new property developments requiring supplies of less than 100KW or 100KVA and affordable housing projects receive the necessary electricity supplies”.

Ms Merten insisted that, “[A]ny lingering doubts on this matter must now be laid to rest, particularly as Eskom already said it will not stop any developments”. She also assured that all those developments that have already applied and received quotations would receive energy.

In line with efforts by government to deal with the power crisis, the Department of Housing has joined a government task team to ensure that energy efficient building regulations are enacted. The criteria will be incorporated into the standard regulations of the National Home Builders’ Registration Council (NHBRC). “The housing department will play its role to ensure that individual households are part of the national energy saving drive,” according to Ms Merten.

The Minister of Minerals and Energy, Buyelwa Sonjica addressed a number of delegates at the 10th annual African Power and Electricity Congress at the Sandton Convention Centre recently and advised that government had instituted a Power Conservation Programme (PCP), which is intended to manage the rationing of power. “To address the current situation, a number of policies and strategies have been developed and approved to ensure that we approach the value chain of electricity supply in an integrated and sustainable manner,” the Minister said.

It was also reported that the Nuclear New Build Programme and the Renewable Energy and Liquid Fuels and Strategies have been developed and approved. In order to speed up the implementation of power conservation programmes, the Minister said that her department was in the process of developing necessary regulations under existing legislation to facilitate the department’s legislative mandate. “As a region and continent we will continue to call upon all our fellow governments and private sector to collaborate in managing the prosperity of the African continent,” according to Ms Sonjica.

The information in this article is courtesy of Luyanda Makapela (“South Africa: Power Shortage Will Not Affect New Property Developments”, BuaNews, 24 April 2008).

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