Three days of load shedding cost SA R12bn
Concerned energy experts don’t see the light
THE PAST three days of Stage 4 load shedding have cost the country’s economy at least R12billion and experts have warned that it could take up to five years to “sort this mess out”.
This amount is expected to increase after Eskom announced that it would continue with 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, which energy expert Chris Yelland said would have cost the country R1bn on that day alone if it occurred for 13 hours a day.
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.
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. We can’t consult in the office due to electricity cuts. Since Thursday, I have been sending my five employees home and giving them half-days and sometimes I would tell them not to come in at all.
“If this continues, I’m bound to lose about R30000 a week, which means I won’t be able to pay my employees and for office rent,” said Maluleke.
Business Partners Limited chief financial officer, Siphethe Dumeko, warned that small and medium enterprises (SMEs) may not be able to reach their growth targets due to power cuts.
At the weekend, Eskom said it had lost capacity after power lines in Mozambique were destroyed when Cyclone Idai hit 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 load shedding has plunged our country into, but I am certain that we are going to turn it around in the next two to three days,” he 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.
“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 said this would have an impact on attracting new investors.
“Economies don’t simply collapse, they just decline. There will be lower than normal growth. Our growth rate is very slow at the moment. It’s inhibiting investment, its inhibiting industrialists from investing in new projects because they are not sure of the security of electricity supply,” Yelland said.
“Normally on a weekend, demand for electricity is low. At night, demand for electricity is low and demand for electricity in summer months is lower. We are experiencing Stage 2 load shedding in the middle of the night, on a weekend, in summer – that is very unusual and it indicates the severity of the problems we have. It is a cause for deep concern,” he said, adding that load shedding could continue for “many more months to come”.
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,” he said.
Eskom has allayed fears about the dark days facing the country, despite the blackout crisis.
“We remind customers that Stage 4 load shedding 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,” said Eskom in a statement last night.
“During Stage 4 load shedding, approximately 80% of the country’s demand is still being met.
“Eskom’s maintenance teams are working round the clock to return generation units to the electricity system.”