FEBRUARY 2019 | ISSUE #3
w w w. b b u l le t i n . c o . z a
LOAD-SHEDDING A THREAT TO TOWNSHIP BUSINESS
CORRUPTION
WINE EXPERIENCE
HOW TO GROW YOUR BUSINESS IN 5 SIMPLE STEPS
Public Enterprise Department recently informed parliament that Eskom is in trouble, and advised the power utility is in the brink of bankruptcy the coffers will run dry in April 2019 if no life-line is afforded to the utility. Eskom’s power woes are a threat to township business, load-shedding cost over 2 billion rand a day and most at risk are township businesses including black employees are at risk. The persistent of power cuts will cost SME’s money the impact of low productivity will ultimately leave businesses with no option but to retrench. Any retrenchments will affect black communities more and this will increase the number of unemployed and plunge black communities to more poverty.
The President expressed his shock and anger to the announcement that Eskom was implementing stage four load-shedding on the 11 February due to failure of six of its power generating units. In his state of the nation address the President conceded the power utility is in crisis. Eskom’s National Spokesperson Khulu Phasiwe acknowledged the power grid is severely constrained and that load-shedding is coursing investor uncertainty for the country. This was the sentiment share as a concern by the rating agency. Moody’s said, is concerned that that the financial woes of the utility will not be solved by the unbundling of the power giant, and that the company’s challenge for the next year will be on generation of more and
sustainable power. Ramaphosa cautioned the power utility could damage the economy. “The consequence may be painful, if we delay in taking action, in responding to this crisis.” Said the President. His interest is to minimise and adverse economic cost to the customer and the taxpayer Without giving much detail the President has pledged the govern ment support to Eskom, more details on the financial support that government will afford the troubled Eskom. As to how much will this help be, the answer to that lies in the upcoming budget speech, by Finance Minister Tito Mboweni on the 20 Feb 19. Eskom has applied for a 15 percent price increase for the electricity
tariff from the National Energy Regulator from the year 2019-2020 and we know the regulator has been holding public hearing on the matter. Now the National Energy Regulator of South Africa has referred the matter for public comment. Whatever the outcome of the National Energy Regulator of South Africa, it is clear South African citizens will pay out more for electricity. In his speech the President said, relating to Eskom “it will need more revenue through affordable tariff increase” this is one of the urgent steps to help the power utility in the country get on track hopefully to its glory years where the electricity giant was profitable with surplus in the bank and the grid.
