Eskom costing economy billions
Outages cost country R12bn but utility says there’s no cause for alarm as load shedding set to roll on this week
THE PAST three days of stage 4 load shedding has cost the country’s economy at least R12 billion, and experts have warned it could take 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 rational load shedding on Thursday, starting with stage 1. Energy expert Chris Yelland said that if this occurred for 13 hours a day, it would cost the country R1bn a day.
Small businesses such as restaurants, hair salons and internet shops have been the worst affected in Joburg’s CBD.
“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 city barber.
Soweto-based business coach Noughty Maluleke said he had lost R6 000 yesterday.
“I had to cancel seven booked office consultations at R870 each. If this continues, I’m bound to lose about R30 000 a week…” said Maluleke.
Business Partners Limited chief financial officer Siphethe Dumeko warned that small and medium enterprises (SMEs) may not be able to reach their targets amid the load shedding.
“One of the biggest issues currently affecting SMEs is their access to reliable electricity and the impact of load shedding. (About) 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 powerlines in Mozambique were destroyed in the devastating cyclone Idai on Friday.
President Cyril Ramaphosa yesterday warned of “tough days ahead” while apologising 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 two to three days,” he said.
On Friday, Eskom moved to implement stages 2 and 3. Stage 4 was implemented from Saturday and is expected to continue this week.
Eskom was continuing with the implementation of stage 4 today. The power utility last implemented load shedding last month.
Yelland reiterated that the country was experiencing load shedding in summer and that it was a crisis.
Another energy expert, Ted Blom, echoed his 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.
He added that new management was needed at Eskom.
The utility has tried to allay 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 about 80% of the country’s demand is still being met,” the utility said in a statement last night.
“Eskom maintenance teams are working round the clock to return generation units to the electricity system.”
University of Stellenbosch School of Security and African Studies Ntsikelelo Benjamin Breakfast said: “The issue of Eskom is going to have an influence on the political balance of the votes cast on election day.”
ORDINARY citizens and businesses are at financial risk owing to the load shedding phenomenon which is choking the country.
Philippe Chapat, the owner of five Dirty Laundry laundromat branches around Johannesburg, said should load shedding persist and he continues to lose business, he might need to cut staff.
“That’s the problem and then it really affects them. My staff are very loyal, most of them have been with me for a minimum of 10 years. They’re like my family and the last thing I want to do is to get rid of them,” said Chapat.
The five branches in Melville, Blackheath, Northriding, Banbury Cross and Randpark Ridge have 15 employees in total.
“When the power is off for four or five hours, you lose money. My ladies that work for me just sit. They can’t work without electricity,” he said.
Chapat said his business loses a few thousand rand a day due to load shedding.
“It depends on how busy it is on the day and some people might come back or they’ll move from one shop and go to another one so it’s very difficult to say, but it’s safe to say it’s a few thousand rand a day,” he said.
Load shedding has also forced most business operators to resort to buying generators in order to stay afloat. An employee at Dali Restaurant in Ferndale, Johannesburg, said they bought a generator out of fear of being out of business.
“Load shedding is unpredictable and we can’t wait while we lose business. The generator has saved us, but at extra cost,” said the employee.