Thursday, March 6, 2008

Eskom building ban bad for business

Economic analysts say Eskom's latest announcement is bad for investors and is 'a little' like economic sanction. Yesterday, the power utility said it was set to block any new construction that was bigger than residential houses.

Analysts say this is worrying for the government which has been counting on sustained economic growth to ease the country's massive unemployment problem. Eskom says any project that will require more than 100 kilo volt amps of electricity will have to wait for at least four months before its application for connection to the grid could is approved. This is anything bigger than a domestic house or a small business.

Eskom says too much development could push its overstretched capacity to breaking point. And as long as there are more applications than generating capacity, there will be delays. - SABC

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