Economic trends

No water, lights or petrol?

South Africa is short on power, and looks likely to be short on water and petrol too. At least our carbon footprint will be smaller.

Felicity Duncan
05 February 2008 00:00

Despite the floods of bad news we've had over the last couple of weeks, there is a glimmer of light; with all the energy shortages, our carbon footprint is bound to decrease!

Other than that silver lining, things look a little shaky. The electricity crisis has been well documented (see Special report: The Eskom crisis), as have its ravages on industry (see Prince of Darkness, Power cuts not a "disaster" - Cynthia Carroll). The potential water problem that may be brewing is all over the news (see SA may face water-contamination crisis, Dr Cornelius Ruiters: Deputy director-general for water-resources infrastructure, DWAF).

And now, the petrol crisis approaches. On Friday, Business Leadership SA CEO Michael Spicer warned Moneyweb of the impending problems (see Michael Spicer: CEO, Business Leadership South Africa). He was discussing the Eskom problem, but argued that the energy crisis was deeper than just the utility's failures.

"I think we need to watch the liquid fuels positions quite carefully, particularly in the centre of the country. Again, industry has been making those noises. We need to incorporate that into our overall energy security thinking. It's not just an electricity issue," said Spicer.

Rumbles began appearing about possible fuel problems over the weekend, linked to the electricity crisis. Basically, without power, local refineries can't convert raw oil into petroleum products. Which means no petrol at the pumps. The whole situation is being exacerbated by people buying diesel-guzzling generators.

Fuel Retailers' Association CEO Peter Morgan sounded some pessimistic notes about the motorists' petrol supply on the Moneyweb Power Hour (see Peter Morgan: CEO, Fuel Retailers Association).

"We're very worried - not only because people are buying generators, but what happens if you have power failures at refineries or power failures at pumping stations in the pipeline? The problem we face is, and we learnt it in 2005 with Christmas, and we learnt it again last year, that the whole infrastructure is under such pressure that any small problem ends up as a serious issue on a retail forecourt. I mean I woke up this morning to the news that Calref Refinery went down over the weekend and that's where our concerns start, plus we had a problem with the pipeline over the weekend. We almost sit at the end of the food chain and wait for it to hit us."

And Morgan was not only concerned with supply issues, but also with the retailers' chances for compensation if the petrol supply chain breaks down.

"The contract that's signed between the wholesaler and the retailer, the service station owner, doesn't allow for any form of compensation. So if an oil company faces a situation where he's only got so much product, he needs to give it to customer A, where he suffers a penalty if he doesn't, or customer B, which is a service station, where he suffers no penalty. It's quite obvious that we can see where the product is going to go to."

Not to us retail customers, that's for sure. So it seems we can look forward to sitting in the dark, thirsty, and unable to drive anywhere nicer. Ideal circumstances for a baby boom, particularly given the breakdown of safety standards among condom manufacturers.

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So why not follow PnPs wise advice Why do all private liquid fuel suppliers and retailers support state set pricing? Set it free. Let the imports and retailing begin (together with the private electricity generators). Let see the Free Marketeers set us free from this blight with just . .more a little action and less talk. . .less by Fuel on February 05 2008, 18:27 Find this comment inappropriate? Report it

Time to wake up Sometimes one has to be brought to the brink of collapse in order to wake up and improve. Let's hope that the powers-that-be have the humility to realise that there is a problem and the competence to rectify it. by Robert on February 05 2008, 18:41 Find this comment inappropriate? Report it

Woe is us! Rend our clothes and weep... I think we all have to be extremely careful, especially the media, not to portray South Africa as a lost cause. It's incredibly easy, and tempting, to paint a picture of gloom. We all know there is ample evidence to.The reality about South Africa -- . .more and perhaps all developing countries -- is that the challenges (or problems) outweigh the stuff that comes easy. To be completely fair, you could apply this same argument to the entire world if you had a mind to do so. The environment, the oil crisis, terrorism, global recession.I am not advocating that we don our rose-coloured spectacles and hum The Sound of Music. But the wearying assault by the media on our sense of hope and optimism feels relentless. And unnecessary. Everyone can see the darkness (now more than ever, let's face it), but we need to help each other to see the light.Your silver lining is sarcasm. How about you expend some energy finding one that isn't? . .less by Jarred Cinman on February 05 2008, 19:00 Find this comment inappropriate? Report it

Going down? Maybe now someone in the ANC will ask a Cabinet Minister if it is really true that it is cheaper to work and live in London than it is to work and kive in Soth Africa, because it really is.And why? by Johan on February 05 2008, 19:22 Find this comment inappropriate? Report it

the ANC The ANC cant answer that , as they cant answer anything , if they do it is rubbish .If you tell them they call you a racist .how dumb can you get .shame by kevin on February 05 2008, 23:16 Find this comment inappropriate? Report it

Wonder how many cabinet ministers and ANC elite had power generators installed before Jan 2008 and who pay's for the fuel of these generators - them or the g'ment. by NetWorking Criminals on February 06 2008, 06:28 Find this comment inappropriate? Report it

and this story is about Zimbabwe.......er, no South Africa following virtually the exact same path..... by optimist on February 06 2008, 07:51 Find this comment inappropriate? Report it

Just read David Carte for a good dumbing down avoid reality at all cost by un-depressed on February 06 2008, 09:44 Find this comment inappropriate? Report it

Jarred Cinman Dear Jarred Cinman, if you need support to stay afloat and help to see the light, I suggst you go to church. If you want to deal with the challenges of reality moneyweb and the press is fine. Dealing with reality is the more difficult one. It needs . .more strength of character and courage. Do you have what it takes? . .less by Brave Lion on February 06 2008, 09:49 Find this comment inappropriate? Report it

Fatal decay of infrastructure and energy availability I'm afraid there's very little upside potential in SA now.Its just not possible for grossly incompetent people to manage and man a sophisticated economy like ours. SA is not Chad, nor Burkina Faso, nor even Kenya. We lack the skills to do the job, . .more mainly as a direct result of AA and BEE. What is really spine-chilling is the govt's myopia and delusional thinking in this area. They refuse to face reality! SA desperately needs 1st world skills, now more than ever. But nothing will change...... . .less by Realist on February 06 2008, 14:48 Find this comment inappropriate? Report it

South Africa's Poem You've got to be taughtTo hate and fear,You've got to be taughtFrom year to year,It's got to be drummedIn your dear little earYou've got to be carefully taught.You've got to be taught to be afraidOf people whose eyes are oddly made,And people whose . .more skin is a diff'rent shade,You've got to be carefully taught.You've got to be taught before it's too late,Before you are six or seven or eight,To hate all the people your relatives hate,You've got to be carefully taught! . .less by Freemarketman on February 06 2008, 20:46 Find this comment inappropriate? Report it

ANC ANC are extremely close to plunging South Africa into recession. They need emergency plans to address the following crises: Power, water, Education, health, roads, infrastructure, crime, corruption, transport, unemployment and loss of skills. ANC . .more management is closely following Mugabe's model used in Zimbabwe, which led to a collapse of the economy. ANC will lead SA into the same mess if they do not get rid of corrupt MP's who's sole objective is to line the pockets of themselves and their comrades. In the end, the poor suffer the most... . .less by ANC on February 07 2008, 08:01 Find this comment inappropriate? Report it

Cry the beloved country They promised so much, initially their hearts were in the right place, and then greed and corruption took hold, blinding their actions making them forget the most important things like helping the poor. Millions are lost every day due to corruption, . .more incompetence and mismanagement...funds that could be used to save lives in hospitals or to build schools for the young minds whose prospects have not improved in the last 10 years... . .less by ANC on February 07 2008, 08:08 Find this comment inappropriate? Report it

Eskom CEO Check the credentials of the Eskom CEo. An accounting degree printed in Zimbabwe...little wonder the wheels are falling off. Apparently he still wants a 7 million rand bonus this year ... Is Trevor Manual going to approve it again ? How did he get . .more the job in the first place ?? . .less by Eskom on February 07 2008, 15:27 Find this comment inappropriate? Report it

Rugby Why do ANC want to interfere in Rugby when SA are world champions. They leave soccer alone, where the team is the worst in Africa, PSL and SAFA directors are pocketing millions, and there is no soccer development or support because the money is gone . .more !!?? ANC want Rugby millions - that's the real reason, not transformation or development!! . .less by Rugby on February 07 2008, 15:45 Find this comment inappropriate? Report it

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