Power crash cash impact
With stage 4 having cost at least R12bn thus far, experts warn of a looming 5-year crisis
THE PAST three days of stage 4 load shedding have cost the country’s economy at least R12 billion and experts have warned it could take up to five years to “sort this mess out”.
This amount is expected to increase after Eskom announced it would be rolling out load shedding for the rest of the week, saying there was “no cause for alarm”.
The power utility started implementing load shedding last Thursday, starting with stage 1. Energy expert Chris Yelland said if it occurred for 13 hours a day it would have cost the country R1bn on that day alone.
Small businesses such as restaurants, hair salons and internet shops have been the worst affected.
“Rent is very expensive and I do not know if I will be able to pay it this month. The power cuts have crippled my business,” said one barber.
Soweto-based business coach Noughty Maluleke said he lost R6 090 yesterday because he had no power supply. “I had to cancel seven booked office consultations (at) R870 each. Since Thursday, I have been sending my five employees home.
“If this continues, I’m bound to lose approximately R30 000 a week, which means I won’t be able to pay my employees and office (space) rent,” said Maluleke.
Business Partners Limited chief financial officer Siphethe Dumeko warned that small and medium enterprises (SMEs) may not be able to reach targets due to power cuts.
“One of the biggest issues currently affecting SMEs is their access to reliable electricity and the impact of load shedding, as 68% of SMEs say that their businesses might not reach growth targets as a result of the power cuts,” Dumeko said.
At the weekend, Eskom said it had lost capacity after power lines in Mozambique were destroyed when Cyclone Idai struck the country on Friday.
President Cyril Ramaphosa yesterday warned of “tough days ahead” when he apologised for the blackouts.
“Eskom is going through some challenges. We are very sorry to South Africans for this type of crisis that this load shedding has plunged our country into, but I am certain that we are going to turn it around in the next 2 to 3 days,” Ramaphosa said.
On Friday, Eskom moved to implement stages 2 and 3.
Stage 4 has been implemented since Saturday and is expected to continue this week.
Eskom is continuing with the implementation of stage 4 today.
“The cost of load shedding is measured by the cost of unserved energy. That means the cost per kilowatt-hour of electricity that is not delivered to the economy when the productive economy needs it,” said Yelland.
He reiterated that the country was experiencing load shedding in summer and that it was a crisis.
Another energy expert, Ted Blom, echoed Yelland’s sentiments, adding that poor management at Eskom and poor maintenance of infrastructure had led to the crisis.
“It will take five years to sort this mess out. Eskom is on a cliff. I expect five years of load shedding,” said Blom.
Eskom has allayed fears about the dark days facing the country despite the blackout crisis.
“We remind customers that load shedding at stage 4 is no cause for alarm as the system is being effectively controlled. Load shedding is a highly controlled process, implemented to protect the system and to prevent a total collapse of the system or a national blackout.
“During stage 4 load shedding, approximately 80% of the country’s demand is still being met,” said Eskom in a statement last night. | Additional Reporting by Vincent Cruywagen