Load shedding, tariffs ‘crippling businesses’

File photo: Kim Ludbrook

File photo: Kim Ludbrook

Published Mar 28, 2015

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Durban - In just 12 hours, a Durban business lost R4 million in income during load shedding.

This was just one of many incidents presented by frustrated business owners and companies on Friday during a meeting with city officials about the double tariff increase proposal by Eskom.

Aggrieved stakeholders said that, because of load shedding, businesses had seen a decrease in income, adding that the proposed increase would cripple their businesses.

Their concerns come after Eskom revealed last week that it intended to apply for a 9.58 percent electricity tariff increase, in addition to the 14.25 percent that has already been granted by the National Energy Regulator of SA.

If the request is granted, it will push electricity increases up to almost 24 percent.

Eskom has said it needs the money to pay for its mounting fuel bills to run open-cycle gas turbines and extend its short-term power purchase agreements to avoid load shedding.

The eThekwini Municipality ratepayers and businesses have reacted angrily to the proposal, vowing to fight it.

Speaking at a robust round-table meeting on Friday, Hans Beier, chairman of Beier Safety Footwear, said his company had lost R4m last month during a 12-hour power outage.

Tongaat Hulett’s Voermol Feeds said it lost 36 hours in stoppages as a result of outbreaks. This translated into a R2.8m loss for the company.

Speaking on behalf of businesses, Durban Chamber of Commerce chief executive Dumile Cele said the proposed price adjustment would continue to cripple businesses.

“This pressure will propel industry to move with greater speed towards alternative sources of energy in an attempt to improve business sustainability in the longer term.”

As a long-term solution, Cele said the power utility needed to send bulk SMSes or e-mails to businesses notifying them of load shedding, and then stick to its schedule.

“Another solution is voluntary load curtailment by large users on agreed percentages to take pressure off the grid during peak usage hours.

The power cuts are also causing hardship to the elderly. Besides the R128 000 The Association for the Aged (Tafta) loses every month because of load shedding, it says older people trip and fall and are trapped in their flats during cuts.

Mayor James Nxumalo said that, while he understood the challenges faced by Eskom, he did not believe a hefty increase would be the correct solution.

A forum was established during the meeting to mitigate the impact that load shedding has on the city, and to ensure continuity in the functioning of the city and its economy.

The city’s electricity department announced that a new load shedding schedule designed to lessen the impact on the economy would be implemented from April 7.

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