Eskom May Be Investigated by Government on Power Cuts

Eskom Holdings Ltd. may face a government investigation into a spate of power cuts that have disrupted supply to customers including BHP Billiton Ltd. and Xstrata Plc.

 

``We sent a letter to Eskom'' saying a probe is being considered, Stoffel Fourie, head of special investigations at the Public Protector's office in Pretoria, said by phone today.

 

Blackouts have shut mines, smelters, offices and shops across Africa's biggest economy this week, following a series of cuts last year, because of a capacity shortage. Eskom, which supplies 95 percent of South Africa's electricity, says outages will continue in the next few years as it builds new plants.

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The cuts have a ``devastating impact'' on the government, business and ``the lives of many of the people,'' Public Protector Lawrence Mushwana wrote in the letter to Eskom today, according to the South African Press Association.

 

``We have received the letter,'' Andrew Etzinger, a spokesman for Eskom, said by phone from Johannesburg, while declining to comment further.

 

Africa's biggest power supplier has a five-year plan to replace aging equipment and expand capacity at a cost of as much as 300 billion rand ($43 billion).