6 May 2008 – Eskom has suspended all new demand side management projects due to ‘cash flow issues’ it has been reported. The cash flow problems stem from soaring coal and diesel prices, but officials have said the utility is confident projects will resume again in June.
This internal cost cutting measure will hopefully improve the utilities cash flow, says DSM manager Monkwe Mpye.
Speaking to Engineering News Online, Mpye said "There is a current crunch on our primary energy costs," which he confirmed was affecting Eskom’s cash flow.
"We don’t sit with a DSM budget," he said, explaining that funds for projects were only claimed back once they had been implemented.
Eskom aims to cut 3 000MW of consumption through its DSM programme by 2012 and Mpye says Eskom is likely to exceed its target for 2008 by 200MW
Eskom’s DSM programme offered shorter lead times compared to building new power plants and offered incentives to replace less energy efficient equipment with higher efficiency units. This included items such as light bulbs, solar water heaters for electric geysers, pumps, motors and compressors.