Essay On Causes And Effects Of Load Shedding

Essay On Causes And Effects Of Load Shedding-84
The load shedding will take place 24 hours per day and will also happen on Sundays.Stage 4 is as bad as it gets in terms of load shedding.

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Energy expert Ted Blom said Eskom is run like a Ponzi scheme.

“In 2007, they were warned of coal shortages and that new coal mines needed to be built.

“At the very time when the country wants to boost investor confidence, a fresh element of uncertainty has been injected into business decision-making.

Prolonged load shedding will not only negatively impact on investor sentiment, but is also particularly damaging to vulnerable small businesses.

If the Eskom supply emergency cannot be resolved soon, an urgent top-level meeting between the government and business will be necessary to see what other mitigating policies and measures can be implemented.” According to Eskom, Stage 2 load shedding calls for 2000 megawatts to be rotationally load shed nationally at a given period.

“Load shedding is conducted rotationally as a last resort to protect the power system from a total collapse or blackout," the power utility said."It could also lead to job losses at a time when there is widespread concern about present levels of unemployment and low levels of economic growth.” Parsons said in the short term the private sector and consumers can make contingency plans to offset the worst effects of load shedding.“But security of power supply remains an essential factor for sustained business and consumer confidence.They need to commission about 20 new coal mines and so far they have done nothing. The only solution they see to a problem is to raise the cost of electricity.” He said independent power producers are chipping in, but the sole responsibility remains with Eskom.“After 4pm, independent power producers can't do much because the sun has gone down.The utility has been very careful so far to prevent the country from reaching this point of no return; load shedding is one of the tools being used to protect South Africa from a national blackout.If the national power grid were to collapse it could take at least one week – and as many as three – to get it back up and running, meaning that South Africans could be without power for a prolonged period of time."Load shedding also means that Eskom will sell less electricity and that will mean less revenue to pay the interest on its huge debts.The main problem for business is that load shedding introduces new uncertainties. It is becoming clearer every day that Eskom is in bad shape and it is increasingly difficult to have confidence in the organisation, which is surely headed for major structural changes, if not downsizing.” Outa portfolio manager for Energy Ronald Chauke said Eskom's woes were due to challenges embedded in its business model.Eskom starts additional, unscheduled power cuts wherever it needs to and outside of its schedules.This means your area can be hit by blackouts at any time without any warning. Stage 4 load shedding is the final option for Eskom to prevent a national blackout.


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