The South African economy is still suffering from a power outage. According to economists, stress relief in its many forms costs the economy money on a daily basis.
Unstable power supply has a negative effect on economic growth. Economists say the economy requires certainty and predictability.
Eskom said on Wednesday that work was being done to alleviate the power outage this weekend. It warns that its generational system is still fragile and unpredictable.
But it seems likely that the current energy challenges will continue as Eskom says its production system is still unreliable and unpredictable.
Dr. Iraj Abedian, dr. Iraj Abedian of Pan-African Investment and Research Services said: “The fact that it has been 14 or 13 years now that the government has shown inability to solve the problem is a matter of great concern. It undermines the trust of the citizen; it undermines the credibility of the government and its competence. And it’s not good for the citizens or the investors – whether they are locals or foreign, it’s very, very difficult to set up and run a business when you do not know when and how the disruption will be.
Eskom has once again apologized for the inconvenience caused by the power outage to the economy and the country as a whole. The electricity company says it works around the clock to ensure that the lights are on.
Eskom CEO Andre De Ruyter says: “We want to apologize to the country for the stress relief that we inevitably need to take to prevent much more inconvenience and the risk of complete systemic disruption. “Our teams are very enthusiastic and enthusiastic, they understand the impact on the country, on the economy and they are working hard to bring these units back.”
“Consumer costs high and disruptive”
And rising electricity costs, coupled with power outages, are likely to hit consumers under pressure. Economists say that the total cost to consumers of spending is high and disruptive.
“Consumers get that double bammy. First, energy prices are rising. Secondly, inflation rises and, as a result, interest rates rise, which in turn complicates the cost of living, “says Abedian.
Eskom says that measures are being taken to ensure that there is no total eclipse. It says it has a system to ensure there is electricity in the country. But it acknowledges that the country is unlikely to reach that level.
Stress relief reduced in step 3
Eskom says that load shedding will be reduced to level 3 from 10 am on Wednesday evening following the recovery of some of its production units.
Eskom spokesman Sikhonathi Mantshantsha said: “After reopening six generations of units in the last 24 hours and three more units, we plan to return tomorrow. Eskom is pleased to be able to reduce the implementation of stress relief in level 3, which starts at 22:00 tonight. “
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Consumer costs high and disruptive due to stress relief: Economists – SABC News
Source link Consumer costs high and disruptive due to stress relief: Economists – SABC News