The cost of load-shedding on SA businesses

Load-shedding has been a persistent issue in South Africa, with businesses across the country feeling the financial strain as they struggle to cope with the unreliability of the power supply. In a recent interview with CNBC Africa, Jorg Zwinscher, the general manager of Balalaika Hotel, shed light on the impact that load-shedding has had on his establishment. Zwinscher highlighted the significant costs incurred by the hotel due to the need to constantly rely on generators and diesel supplies during power outages. He mentioned that the initial setup back in 2008 when load-shedding first began was a major capital outlay, and the hotel now goes through around 80 liters of diesel per hour during outages. This translates to a hefty expense of around 320 liters for a four-hour outage. Despite efforts to mitigate the impact by ensuring regular servicing of generators, Zwinscher emphasized the challenges posed by unexpected breakdowns during load-shedding periods. The unpredictability of load-shedding stages, ranging from stage 2 to stage 4, further complicates matters for businesses like Balalaika Hotel. Zwinscher noted that regardless of the stage, the transition to generator power is swift but costly. The oscillation between stages and lack of communication from Eskom create additional hurdles for businesses, as they struggle to adapt to the ever-changing conditions. Staffing issues also come into play, with employees facing delays getting to work due to traffic disruptions caused by load-shedding. Despite these challenges, Zwinscher remains pragmatic about the situation, expressing skepticism about a quick resolution to the crisis. With Eskom's massive debt and operational challenges, he emphasized the need for improved communication and maintenance of power stations to mitigate the impact of load-shedding on businesses. As South African enterprises continue to grapple with the repercussions of an unreliable power supply, the road ahead remains uncertain, with businesses like Balalaika Hotel bracing themselves for continued disruptions and financial strain.