NO matter how long or short load shedding is, businesses are still struggling and not being able to operate only makes things worse with unreliable energy supply ranking second on the list of key business concerns in a recent business environment survey by the Cape Chamber of Commerce.
This comes as the nation is on the fourth day of consecutive load shedding after stage 3 was implemented on Saturday and upgraded to stage 6 on Sunday.
On Monday, Eskom announced loadshedding was reduced to Stage 4 from until further notice.
“This follows the successful recovery of all five units at Majuba, two units at Camden, and one unit at Medupi since Saturday, totaling eight out of ten generation units that had tripped this weekend. Additionally, emergency reserves replenishment is progressing well.
“The return of these units comes after identifying the root causes of multiple unit trips, which were unconnected and purely technical in nature, related to electrical and control system issues in auxiliary parts of these power stations. Planned maintenance stands at 7 706MW,” Eskom said.
Eskom did not respond to further requests for comment yesterday.
Electricity and Energy Minister Dr Kgosientsho Ramokgopa on Sunday said the occurrence was not permanent and would be resolved by the end of the week.
However for businesses, the impact would still be severe as every hour of every day counts.
Cape Chamber of Commerce and Industry president Jacques Moolman said: “The most recent business environment survey – findings were released last year – show unreliable energy supply ranked second on the list of key business concerns. The findings were based on 426 Western Cape businesses surveyed over a two-month period.
“While we don't have independent figures we have taken note of other impact studies, such as that conducted by AgriSA which found 56% of farmers had experienced loss of income due to load shedding, while 39% reported a drop in crop yields. These losses are concerning given the importance of agriculture to the Western Cape economy.”
Outside of agriculture, manufacturing is possibly most impacted, with smaller businesses most likely to be impacted due to tight margins and inability to invest in alternative power supply, Moolman said.
“The Western Cape's boatbuilding sector is a case in point, with smaller yards needing to curtail production time due to the prohibitive cost of sourcing alternative power. In some cases the load shedding ‘holiday’ has allowed some large businesses to invest in alternative supply, with some notable investments in solar infrastructure.”
National Informal Traders Alliance of South Africa (NITASA) president, Rosheda Muller said load shedding caught many by surprise and only made things worse in already struggling economic conditions.
“It impacted all of us. Traders are only starting to build up again now after the festive season. What about all our mamas making and frying their food goodies, the deep fryers are using electricity. The clothing manufacturers who need their sewing machines to make the products to come to the market. The informal craftsmen who need the power for their tools. If my power is off now I cannot be on that machine to ensure stock is going to be ready for Eid. Every day counts. We have raised the issue of a declined economy. Go to the Grand Parade, Khayelitsha everywhere we are, reports are the same, it is so so dead. Businesses are still very weak and by not being able to operate will make things worse. We have to look at the informal sector, the only sector that houses the unemployed. We need much more from government to develop them for growth,” said Muller.
UCT Liberty Institute of Strategic Marketing head of projects, Dr James Lapperman said: “Those with backup generators had some struggles with the short notice (they hadn’t tested their generators in many months). Many in the middle class and above now have solar, but the working class have suffered. The poor and working poor are more accustomed to low electricity usage, but also have less options to compensate for the lack.”
Investec chief economist, Annabel Bishop said the rand had shrugged off the latest bout of load shedding.
“The rand continues to shrug off the Budget delay, ticking stronger on US dollar weakness as the US continues to see a slow start to new active tariffs (as opposed to those paused to use as threats) with growth promoting incentives instead. The rand has reached R18.30/USD from R19.23/USD this year, then was rebuffed from this resistance level, near R18.35/USD currently. The rand has strengthened, although less substantially against the euro and the UK pound this year.
“(The) Electricity Minister has said he believes load shedding will last the week, but that they are dealing with it and once this bout of supply interruption is overcome load shedding will be a thing of the past. The rand has also shrugged off the latest bout of load shedding, as the domestic currency remains largely driven by international events, and investors are used to loadshedding in SA and weak growth outcomes,” said Bishop.
Cape Times