Electricity production lifts marginally in October

Electricity production picked up in October, following two months of contraction.

According to data released by Statistics South Africa (StatsSA) on Thursday, electricity production increased 0.8% year-on-year in October. 

Investec economist Lara Hodes noted that production has contracted 0.8% in September and by 0.4% in August.

Electricity consumption increased by 2.2% year-on-year in October 2018, up from 0.3% in September. Hodes remarked that consumption still remains relatively muted, reflecting the "subdued nature" of the domestic economy.

"The recent escalation in load shedding across the country will likely put further strain on the already constrained economy, especially highly energy intensive sectors, with credit rating agencies likely watching the situation closely," said Hodes.

Earlier on Thursday Public Enterprises Minister Pravin Gordhan briefed the media on the latest operational matters at Eskom following several days of load shedding.

The minister said that there were no plans to privatise the debt-laden power utility.

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