Loadshedding is negatively impacting the businesses sector, and local businesses are not exempt.
This is according to Jacques Moolman, president of the Cape Chamber of Commerce and Industry.
“[The] Western Cape Member of the Executive Council (MEC) for Finance and Economic opportunities estimated an economic loss of R500 million per loadshedding stage, per day, which equated to a loss to the Western Cape economy of around R75 million per stage per day,” said Moolman via written correspondence with MatieMedia.
Loadshedding during June and July reached Stage 6, as labour strikes at Eskom caused power supply problems. PHOTO: Na’ilah Ebrahim
‘We are really struggling’
“It is most unfortunate that the small business sector, a priority sector in terms of government’s job creation programmes, is particularly hard hit by loadshedding,” said Moolman.
“We are really struggling,” said the manager of the HG International hair salon in Stellenbosch, who requested to remain anonymous.
During loadshedding, the salon can only operate within certain hours, which has resulted in a loss in clients and money, the manager stated. “Some clients don’t stay around [during loadshedding]. We give service and tell them to wait [but] they will take other options,” he explained.
Alternative energy sources can be too expensive for the business to maintain, the manager explained.
Mohammed Yasin Bhuiyan, the manager of Bokdadiya Café in Bird Street, stated that the loss of power has been “very bad for the business”. Bhuiyan explained that he must close the doors of the shop when loadshedding occurs.
Generators were also “too expensive”, explained Bhuiyan.
Mohammed Yasin Bhuiyan (pictured) is the manager of the Bokdadiya Café in Bird Street, Stellenbosch. Bhuiyan told MatieMedia that no customers visit the shop during loadshedding. PHOTO: Na’ilah Ebrahim
An unreliable system
“The system [Eskom’s electricity grid] is unpredictable and unreliable,” stated André de Ruyter, group chief executive officer of Eskom Holdings, during a recent media briefing.
De Ruyter explained that loadshedding is caused by a shortfall in general capacity of the Eskom grid. Due to such shortfalls, the company has to “maintain the reserve margin and impose loadshedding”, he explained in the briefing on 11 July.
However, due to the unlawful strike that occured during late June, “Eskom suffered backlogs and maintenance”, said De Ruyter. He warned that the grid “would need to take weeks to recover from the strike”.
‘An economic crisis’
“The energy crisis is an economic crisis,” according to Stuart Grobbelaar, spokesperson for Stellenbosch Municipality. “It has become an imperative for municipalities to start investing in alternate energy sources to protect local businesses and jobs,” he stated via written correspondence with MatieMedia.
In April, the municipality switched on solar panels on some municipal properties in its attempt to rely less on Eskom for electricity supply, said Grobbelaar.
Memorandums of understanding have also been signed with the Western Cape Government and partners such as Stellenbosch University and the Centre for Scientific and Industrial Research to “focus on potential sources of energy”, he said.
However, these alternatives need to be “cost effective and feasible”, said Grobbelaar.
While finding alternative energy sources could help in the short- or medium-term, Moolman said there should be a “long-term solution addressing the Eskom crisis and allowing a deregulated energy market to ensure a stable grid”.
“Municipalities might also consider short-term support for struggling businesses, where budget allows,” Moolman added.
Around 100 private organisations and residents have generated roughly 1MV of electricity through solar panels this year according to Stuart Grobbelaar, spokesperson for Stellenbosch Municipality. Solar panels have also been installed at key municipal properties, such as the Van Der Stel Sports Grounds (pictured), Stellenbosch Town Hall, administrative buildings, municipal depot and the traffic department, which was completed at the end of June, said Grobbelaar. PHOTO: Na’ilah Ebrahim