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[Ferro-Alloys.com]South Africa government has unveiled a large-scale supporting program for the domestic power suppliers who are in the difficult situation. South Africa National Grid will accept new equity and increase extra debts. South Africa National Grid provides 95% of the power in this country. Inadequate investment and crumbling infrastructure have posed a threat to the development of the company since the beginning of 2014, which makes it unable to meet the need of increasing power demand.

 

“South Africa National Grid is now facing a great challenge in the respect of sufficient power supply. A series of subsidy programs have been approved by the cabinet to ensure the stability of power supply, which will support the GDP growth.”, the Treasury said. The Treasury also unveiled that they would provide financial support to the National Grid and its debts, in order to supply enough power to all its clients.The company will release its equity scale in the budget announcement in October. Two large-scale coal power plants are now being built by the company to enlarge generating capacity, in order to avoid massive blackout, which once happened in 2008.

 

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