Rolling power cuts: how small businesses can adjust to the ‘new normal’

Eskom says load shedding is a means to protect South Africa’s electricity system. Picture: Karen Sandison/ANA

Eskom says load shedding is a means to protect South Africa’s electricity system. Picture: Karen Sandison/ANA

Published Apr 6, 2023

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Load shedding can have the effect of killing small businesses – the heart of government’s plan to fight unemployment.

However, load shedding is going to be part of the South African living experience for the foreseeable future, and entrepreneurs will need to find innovative ways to combat its effects if their businesses are to survive.

Alumo Energy David Seinker, CEO of The Business Exchange, says the impacts of blackouts include:

Loss of production: A significant number of businesses rely on electricity to power machinery, technology, and light to produce their products or provide services. The loss of electrical power means that daily production targets cannot be met.

Loss of profit: The loss of production results in a loss of profit. If you are not producing goods or services, the direct result is that you have nothing to trade, and if you don’t trade, you do not generate an income, and your bottom line suffers.

Theft and burglary: Insurer Dialdirect has compared the number of burglary incidents when there is no load shedding to when there is from July 2019 to May 2022 and found that during the week, load shedding resulted in a 3.2% increase in burglaries, and the figure more than doubled to 5.2% on weekends. Load shedding compromises security, leading to further losses.

Damage to electronics: the surge of electricity when the power is returned upsets the steady voltage flow in the electrical system. This may damage electronic appliances.

However, it is not all doom and gloom. This is what you can do to mitigate some of the effects of blackouts on your business:

1. Be aware: know the load shedding schedule. Knowing when you will be affected by power interruptions allows you to plan ahead. You can maximise the time when there is power available to the benefit of your business.

2. Consider alternative energy solutions: while converting to solar energy or installing a generator may seem expensive, the long-term financial benefits are immeasurable. With the advancement of technology and innovations in the alternative power sector, the costs related to the installation and maintenance of alternative power systems have dropped, making it a worthwhile investment.

3. Back up your data: this should be a routine procedure in any workplace. With a back-up system in place, there is no need to panic if the power goes off.

IOL Business