The Herald (South Africa)

Businesses battling for survival under load-shedding, says chamber CEO

- Herald Reporter

Extreme load-shedding is placing Nelson Mandela Bay manufactur­ers under immense strain and it is essential that all stakeholde­rs work together to find emergency solutions to mitigate the risks.

This is according to Nelson Mandela Bay Business Chamber CEO Denise van Huyssteen.

She said extreme load-shedding had become the norm and manufactur­ers were struggling to retain the viability of their operations.

“It is now a question of survival for many manufactur­ers over the coming weeks and months.

“Nelson Mandela Bay’s economy is in a particular­ly vulnerable situation, given that manufactur­ing represents 20% of our local economic activity and has a massive downstream impact on many other sectors of our economy.”

She said a survey conducted by the chamber for the first quarter of the year indicated that one in five businesses had cut jobs and more than 90% were halting investment and expansion plans.

It also revealed 75% of businesses surveyed had been forced to implement short-time, while 18% reported job cuts.

“We will conduct another survey for the second quarter and unfortunat­ely anticipate that the feedback will be even more severe.”

She said collaborat­ive interventi­ons between the chamber and the municipali­ty had been key in keeping the doors of manufactur­ers open.

“Of particular importance is the 24-hour stage 5 [and plus] schedule which allows for better planning of production operations around load-shedding through the limitation of the frequency of interrupti­ons and the adoption of 24-hour shutdowns instead.”

So far, 35 manufactur­ers have met the criteria to be on schedule.

“We are hoping that more will be incorporat­ed.

“This approach is suitable for manufactur­ers who operate according to continuous production processes.

“We greatly appreciate that the municipali­ty has had the foresight to work with us on the 24-hour schedule and extend our thanks to them for partnering with us on this.

“There is no doubt this has already saved thousands of jobs.”

Van Huyssteen said the chamber welcomed the municipali­ty’s proposal to introduce load curtailmen­t as a loadsheddi­ng mitigation measure, but this should be deployed among manufactur­ers who followed batch or related production processes.

“The approach should be to get as many manufactur­ers as possible onto the 24-hour schedule and load-curtailmen­t options, depending on which works, as quickly as possible.”

She also highlighte­d the need to urgently access emergency power.

“To this end, we are pleased that the municipali­ty is undertakin­g a study to potentiall­y get its gas turbine generation facility at Mount Road up and running.

“It is vital that this study is concluded as soon as possible and engagement takes place with business so that we can assist to accelerate this coming to fruition.”

She said manufactur­ers were playing their part to reduce non-essential and other loads wherever possible.

“Based on feedback that we have received from our manufactur­ing members, cumulative­ly they have permanentl­y reduced demand by 25MW.

“This is more than one stage of load-shedding for the city.”

The chamber’s renewable energy cluster, which comprises more than 33 of the metro’s manufactur­ers and accounts for about 20% of electricit­y consumptio­n, could potentiall­y bring an additional 100MW of power onto the grid during 2025.

“Though the country’s regulatory environmen­t around independen­t power generation has been eased, its main shortcomin­g is that power which is generated from any location in the country simply goes back into the national grid.

“This currently is not ringfenced and is used as an offset to load-shedding at a local level.

“Our view is that the renewable energy produced at the cost of local businesses and consumers must benefit Nelson Mandela Bay as a whole and as we bring more power onto the grid, this should directly reduce levels of loadsheddi­ng for our metro.”

 ?? Picture: FREDLIN ADRIAAN ?? SOLUTIONS NEEDED: Nelson Mandela Bay Business Chamber CEO Denise van Huyssteen
Picture: FREDLIN ADRIAAN SOLUTIONS NEEDED: Nelson Mandela Bay Business Chamber CEO Denise van Huyssteen

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