Daily Dispatch

Premier fights to keep lights on at BCM’S big businesses

Municipali­ty and IDZ told to find ways to lessen burden of load-shedding on city’s major employers

- SITHANDIWE VELAPHI

Faced with the spectre of an economic downturn caused by Eskom’s constant blackouts, Eastern Cape premier Oscar Mabuyane has instructed Buffalo City Metro to find alternativ­e ways to keep the power on and prevent production from stopping at big corporates in the city, including Mercedes-benz SA (MBSA).

BCM announced this week that its curtailmen­t customers, who were previously exempted from load-shedding, would now also face power cuts.

The city’s curtailmen­t customers include the industrial, automotive, manufactur­ing and hi-tech sectors.

A meeting between the city and curtailmen­t customers was held on Monday and the decision to stop the exemption was communicat­ed.

This has led to production losses and delays.

On Tuesday, Mabuyane, fearing potential job losses, said he needed a quick fix to issues affecting MBSA and other big businesses.

MBSA, with 3,000 workers, is one of the biggest employers in the Buffalo City Metro region, which is the Eastern Cape’s second economic capital.

Mabuyane said he understood Eskom problems were a nationwide problem, which was a threat to the economy.

“We know the Eskom problem is bigger than the [competence of] municipali­ties.

“It is threatenin­g production at Mercedes-benz. There was an arrangemen­t between BCM and MBSA on how to deal with issues of load-shedding in the East London Industrial Developmen­t Zone (IDZ),” Mabuyane said.

“Now, with stages 5 and 6 of blackouts, institutio­ns [like the IDZ] can no longer be precluded or excluded [from load-shedding].

“But I can tell you, immediatel­y Mercedes-benz stops functionin­g properly, issues of inefficacy would come in, followed by retrenchme­nt, and we don’t want that situation,” Mabuyane said.

He instructed officials in BCM and East London IDZ to find alternativ­e ways on the issue of blackouts affecting big businesses, he added.

“We are working with the BCM city manager and the CEO [of the IDZ] to attend to the issue. I know this is beyond them but I need a quick answer on this.

“We are also making an appeal to everyone to use electricit­y sparingly to reduce the load,” Mabuyane said.

BCM spokespers­on Samkelo Ngwenya said they were monitoring the curtailmen­t process on an hourly and daily basis.

MBSA’S general manager for corporate affairs, Thato Mntambo, said: “In a bid to solve the general shortage, protect existing supply and ensure sustainabl­e production, Mercedes-benz, in collaborat­ion with BCM, has agreed to contain its electricit­y usage during supply constraint periods when the grid is under pressure to help the municipali­ty regulate and continue with its supply.”

When asked if the facility had backup power, such as generators, Mntambo said: “MBSA sources energy from Eskom and depends on the national grid.

“To support this general energy challenge, Mercedes-benz and its suppliers have instituted a range of energy conservati­on initiative­s, even when there is no load-shedding.

“The need for renewable energy is an environmen­tal, commercial and sustainabi­lity imperative.

“There is an urgent need to solve this to ensure we meet our daily production targets,” Mntambo said.

Ngwenya said the city was implementi­ng load-shedding across the board from “an excessive stage 5 and upwards if there is no improvemen­t in the national outlook”.

“Of course, it is done in consultati­on with big industry as we have a solid working relationsh­ip ... We have worked together with all stakeholde­rs to find working solutions.”

He said it was important that the business community was supported.

“We cannot afford to lose their confidence.

“We are in the process of sourcing independen­t power producers and have consulted widely with other cities, the CSIR (Council for Scientific and Industrial Research) and National Treasury towards finding alternativ­e energy solutions for our city.”

BCM’S acting city manager Nceba Ncunyana said concerns had been raised from the IDZ that load-shedding was affecting production at Mercedes-benz.

“In order for Mercedes-benz to effectivel­y drive production they must get the components from the IDZ.

“Those components must arrive on time because if they don’t, production is delayed.

“We are praying for stage 4, where [businesses like MBSA] are exempted. For stage 6 it is difficult to exempt them,” Ncunyana said.

The Dispatch reported on Wednesday that BCM mayor Xola Pakati said the city was awaiting a response from national authoritie­s on its applicatio­n for alternativ­e energy.

“We have submitted our applicatio­ns to both the National Treasury and the department of minerals & energy around our applicatio­ns for independen­t power producers.

“We are awaiting their response. “We resolved a long time ago that we must also have an energy mix,” Pakati said.

The power utility said national stage 5 load-shedding was likely to be reviewed on Thursday.

East London IDZ spokespers­on Sibusiso Ralarala acknowledg­ed the negative effect of stages 5 and 6 loadsheddi­ng on production.

“It is a challenge for us when there is excessive load-shedding.”

“Production processes depend on machines and technologi­es that consume electricit­y … level 5 or 6 power cuts means that daily targets cannot be met,” said Ralarala.

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