Our low-wattage president, Barack Obama, is clueless about the reasons for “rolling blackouts”—“’load shedding’ is the local euphemism,” in South Africa, where, since “freedom,” the electrical grid has been degraded at every level: generation, transmission, and distribution. Distribution is now entrusted to the local, increasingly inept, authorities.
Dumbo has pledged to borrow some more from China, $7 billion to be precise, “to help combat frequent power blackouts in sub-Saharan Africa.”
You’ll find explanations to some of the problems in Into The Cannibal’s Pot: Lessons for America from Post-Apartheid South Africa (pages 99-100):
…pylons and poles are routinely flattened, stolen, and then smelted. Indeed, blackouts and blowouts are intricately connected to the breakdown of law and order. “Up to 100 miles of cables may be going missing every year, destined for markets such as China and India where booming economies have created insatiable demand for copper and aluminum,”[26] reports Britain’s Daily Telegraph. “The result has been entire suburbs plunged into darkness, thousands of train passengers stranded, and frequent chaos on the roads as traffic lights fail.”[27]
As The New York Times saw it, “[t]he country’s power company unfathomably ran out of electricity and rationed supply.”[28] (My emphasis.) Not quite. I’ve lived through Highveld thunder storms and Cape, South-Easter, gale-force winds. Few and far between were the blackouts. (I purchased a generator in the U.S., after experiencing my first three-day power outage.) No, Eskom, the utility that supplied most of the electricity consumed on the African continent, did not run out of juice. It just ran out of experienced, skilled engineers, expunged pursuant to BEE. “‘No white male appointments for the rest of the financial year,”[29] reads an Eskom Human Resources memo, circulated in January of 2008, and uncovered by the Carte Blanche investigative television program. The same supple thinking went into destroying the steady supply of coal to the electricity companies. Bound by BEE policies, whereby supplies must be purchased from black firms first, Eskom began buying coal from the spot market. Buyers were to descend down the BEE procurement pyramid as follows: buy spot coal first from black women-owned suppliers, then from small black suppliers, next were large black suppliers, and only after all these options had been exhausted (or darkness descended; whatever came first), from “other” suppliers. The result was an expensive and unreliable coal supply, which contributed to the pervasive power failures.[30]
Ideally, the power grid ought to be privatized:
Unlike private firms, state-mediated utilities need not respond to profit and loss signals. So long as they have taxpayer funds to make good their errors, these hydra-headed creatures have the option to produce at a loss. Thus, in a market in which the state has a hand, prices will never fully convey the information they relay in an unhampered market, and will invariably fail in guiding producers to meet consumer demand. Electricity is best entrusted to fully free markets. Only private enterprise raises initial capital voluntarily and applies careful entrepreneurial forethought to all endeavors. Left to their devices, entrepreneurs will, in the long run and in response to price signals, build more capacity—electricity-generating plants—and prices will inevitably fall. Only entrepreneurs in competition with one another have the incentive to satisfy the customer, on whom they depend for their very survival.
