Load shedding forcing property owners into using other energy sources
According to FNB property sector strategist John Loos, “this all adds to costs that have to be recovered from a tenant population that is already feeling the pressure of a weak economy and many years of rising municipal rates and utilities tariffs. This can add to financial pressures on tenants, which in turn can feed through to higher vacancies and weaker rental growth should the cost pressure get too much.
“Load shedding disrupts the level of economy-wide production and thus is likely to slow economic growth from what it otherwise may have been,” said Loos.
Loos was commenting on news that the provincial government has begun offering “load shedding support” by way of advice on the installation of solar photo-voltaic (PV) in businesses or homes to beat load shedding and keep the economy afloat.
Finance and Economic Opportunities MEC David Maynier said: “If your business is considering the installation of rooftop PV, or if you require any advice on how you can make your business more resource efficient, including water and waste management, the Department of Economic Development and Tourism and GreenCape are available to assist."
Meanwhile, a R1.2 billion solar farm has been approved by the National Treasury for the Kannaland municipality. The project will be a partnership between Kannaland municipality and InnovSure to provide energy to the municipality.
Deidre Baartman, DA Western Cape Committee spokesperson on Finance, Economic Development and Tourism, said: “Government cannot tackle the country's energy crisis on its own. It's vital we break down the monopoly on energy generation.”@MwangiGithahu