As South Africa’s crippling power utility falls even further into a state of collapse, the devastating impact load-shedding is having, and will continue to have, on citizens and more specifically on business and the economy at both a local and national level, raises serious questions.
The current bout of load-shedding has been attributed to the failing of six generating units which experts have said equates to the loss of an entire power station.
One can only come to the conclusion that lack of proper maintenance is behind this catastrophe which has left us all living from day to day, not knowing whether our power will be cut for two, three or four hours.
There are also rumours of deliberate sabotage (for whatever reason). Although dispelled, the unlikely occurrence of six units failing virtually at the same time does lend credence to such a conspiracy theory claim.
At local level, small businesses are forced to invest in generators, which is never a cost effective option especially with the cost of fuel rising more than it drops, and those who can’t afford it suffer great losses as things grind to a halt.
Solar energy, too, is not a cost effective option, especially for small businesses whose narrow profit margins cannot fund this extra cost.
What small business can afford to close its doors for two, three or four hours each day?
If businesses invest in alternative forms of energy, the result is likely to be an increase in the prices of the company’s products or services.
It is a vicious circle.
With the cost of living increasing seemingly by the day, consumers are already tightening their belts and cutting out unnecessary expenses.
At the end of the day, food and petrol, rent and school fees are essential.
A forced slowing down of consumer spending could spell disaster for a business owner.
On a larger scale South Africa enjoys much foreign investment, with Rio Tinto’s Richards Bay Minerals (RBM) just one local example.
Last year the Office of the Premier said RBM is KZN’s largest contributor to the province’s tax base, at R1.3-billion.
This is just one example of the major loss our country would suffer by losing such revenue.
The ‘best’ case scenario is planned load-shedding for two hours a day.
The worst case scenario now staring us in the face is four hours’ shutdowns without any warning.
The pressure a ‘surprise’ shutdown has on any business, and household for that matter, is immense.
What makes us think foreign investors will remain invested in a country whose power grid is on the verge of collapse?
In this situation, it seems the only certainty is uncertainty itself.
