NERSA’s Proposed Power Conservation Regulations

South Africa power regulator NERSA has recommended regulations for its power conservation program in a bid to obtain public reaction by early January.

The proposal will allocate an annual limit for electricity use and if users exceed the designated level, an additional charge to regular tariffs will be issued.

“The program is designed to accelerate the achievement of energy savings through behavior change and promoting the use of demand side management,” NERSA said in the proposal.

The global economy combined with South Africa’s chronic power woes has instilled fear in potential investors. The country will also hold political elections next year which fuel the fire as a possible economic infrastructure change could take place as a result.

“The reduction in consumption will also provide Eskom with the ‘breathing space’ necessary to address unplanned maintenance and possible slippages in the tight planned timeline for bringing new capacity onto the grid between 2008-2013,” the regulator added.

Eskom anticipates spending about R343 billion over five years on new power plants.

The final decision on the power-saving program is expected by the end of April 2009.