Load shedding: bitter pill, but necessary
AN ENERGY expert has said that, although frustrating, eThekwini going back on to the full load shedding schedule is necessary, according to a guiding code of practice for the power outages.
While an insurance expert said that total grid collapse is now more plausible than ever, he’s advised people to prepare strategies to tackle this.
Monique le Roux, a senior researcher at the Council for Scientific Industrial Research, said according to the NRS 048-09, the national code of practice for load shedding, all customers should be treated similarly.
“All customers should be considered for load shedding, and load shedding should be implemented such that there is equitable participation by all customers.
“Given this fact, it is understandable that Eskom would want to return eThekwini to the normal load shedding schedule like the rest of South Africa because any exemption granted to eThekwini would mean other customers are subject to more load shedding to make up for the load that is not shed in eThekwini.’’
She said load shedding has a very detrimental impact on everyone in the country, and it could be perceived as being unfair should certain areas be exempt from it while other areas must then carry the additional burden.
Meanwhile, Hermanus van der Linde, CEO of IntegriSure Brokers, an insurance company, said a grid failure is described as a total or partial interruption or suspension of electrical power supply from the national, regional, municipal or private grid supplier resulting in widespread power outages.
“The risk of a total grid failure is seeming like more of a real possibility, and can no longer be considered an unforeseen event, meaning it no longer falls within the definition of an insurance peril. This has necessitated insurers to subsequently exclude cover.’’
Van der Linde said although the South African Special Risk Insurance Association recently withdrew circulars announcing that it will no longer provide cover for damage to property or riots and protests in the event of an electricity grid collapse, there are other risks that need to be assessed.
“The country has reached a stage where preparation for a complete blackout needs to be factored into strategic planning. To manage the risks associated with any incident, including a potential grid collapse, individuals and businesses should take proactive steps and have contingency plans in place to manage any possible disruptions.’’
He said effective risk management involves identifying potential risks, assessing how likely they are to happen, what their impact may be, and how you can minimise or mitigate them.
“Once you have determined these elements, it is essential to put the right measures in place and formulate a risk management plan.”
Five risk management strategies to consider:
1. Risk assessment: Identify all potential risks and consider the possible resultant damage. Also include a risk assessment related to your finances, investments and legal compliance.
2. Risk control: Some risks cannot proactively be prevented. Put systems in place to minimise the impact they may have.
3. Risk financing: Involves having a financial buffer in place for reparations or to cover potential losses for a short period.
4. Risk governance: This risk management strategy involves formulating a risk management team who are responsible for overseeing all risk management measures and who are accountable for responding to risks as soon as they arise.
5. Continuity planning: Involves thinking ahead and creating a plan to quickly resume critical functions should an incident occur.
“You may need to integrate a few of these strategies, depending on the nature of the risks you are planning for. Be realistic, learn how to prioritise and formulate an effective risk management strategy best suited to your specific needs.”
In a statement last week, Mpho Makwana, the Eskom board chairperson, said that going through the winter months will be difficult.
“We fully comprehend the adverse impact that rotational load shedding has on South Africa’s already fragile economy and its people. We are doing everything to mitigate the intensity of rotational load shedding, including taking lessons from the rest of the world.
“We have seen that effective rotational load shedding during winter months requires a co-ordinated effort among all stakeholders in a country.”
Eskom did not respond to further questions by the time of publication, on questions relating to KZN.