Letter outlines catastrophic impact of load shedding on business

File Picture: Nokuthula Mbatha African News Agency (ANA)

File Picture: Nokuthula Mbatha African News Agency (ANA)

Published Jan 18, 2023

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A letter of demand to Eskom, Nersa and the department of Public Enterprises has outlined the damaging impact of load shedding on business in the country.

On Monday, UDM leader General Bantu Holomisa, Mmusi Maimane, the founder of the Build One South Africa movement, the IFP, the National Union of Metalworkers of SA (Numsa), policy analyst Lukhona Mnguni, Phiwe Mehlo, Ntsikie Mgayiya and NPOs asked a team of lawyers to issue a letter of demand to Public Enterprises Minister Pravin Gordhan over load shedding and to stop the 18.65% tariff hike given by Nersa to Eskom.

Regarding the impact on business, the letter of demand states that Section 22 of the Constitution guarantees to every citizen the right to choose their trade, occupation, or profession freely, subject only to regulation by law.

“Our clients report that many small businesses have buckled under the strain of load shedding. They report that these entities often miss deadlines, put up with inappropriate conditions such as stock decline and wastage, and have to deal with the disappointment of their customers when they have to turn them away as they have no power to accommodate them.

“Small businesses report that load shedding is tough on their operations and can be mitigated only by long-term solutions such as the installation of solar panels, and generators, devices that they can ill afford. In the face of these constraints, many SMMEs are left with little option but to close their doors with others facing the same looming prospect.”

Lawyers said businesses were affected in different ways by load shedding, and many could not survive without access to the means to do trade.

These include access to WI-FI, a decline in staff morale, ATMs out of order and the impact on retail and restaurants’ loss of planning, inability to trade, and damage to equipment.

They also raised security concerns, saying these were pervasive and included shoplifting, theft, compromised digital security systems, and the shutdown of firewalls.

Gordhan has until January 20 to provide these undertakings, and if this is not forthcoming then papers will be lodged on January 23 for urgent relief.

On Tuesday, the department of public enterprises responded and confirmed that it had received a letter from Mabuza Attorneys demanding that the department and Eskom make certain undertakings regarding load shedding and the 18.65% tariff increase granted by Nersa.

Spokesperson Richard Mantu said they were still considering the letter and seeking legal advice on the matter and would respond in due course.