This week, we see that Eskom, the government provider of our power, is looking to increase tariffs again. As much as everyone is throwing their hands up in despair, we need to ascertain how this affects all business.

Opting for alternative options to continue to operate during the downtimes that Eskom cannot provide them with power. More giant corporations have slowly been removing themselves from the Eskom grid. There is a recommendation to charge these companies higher tariffs to top up the natural resource and self-funded solutions with Eskom-generated power.

We will not head down the rabbit hole of what is right vs. what South African corporates can help the country with. However, we need to assess the impact load shedding and higher electricity tariffs will have on the small business owner.

Business Insider is convinced that South Africans pay less power than other countries. The South African consumer and small business will be difficult to convince of this, as the power interruptions that they experience, and possibly having to close their business for trading during those times, has a far higher cost.

The constant load-shedding and no solution in sight is a hard pill to swallow when the government starts to negotiate increases in tariffs.

The renewable argument

For decades now, the national energy supplier has been unable to provide the country with the energy it needs. Households that can afford to are moving to renewable solutions. Self-funding solar, gas and other power solutions do not rely on the national grid. But, with Nersa wanting to penalise the consumers for taking the initiative and the cost of the solution onto their shoulder, there may be some pushback.

Companies want to be the superhero

When many well-run corporates can contribute back to the power grid, the government refuses to consider the help. Small businesses are often not able to outlay the initial cost of going off-grid. Which are exactly the companies that are losing across all fronts.

You just need to walk through a mall during load shedding to see which businesses can operate during the downtime and who can continue to trade. When the cost of not moving to solar and gas solutions is worth covering the trading downtimes, more companies are heading to the renewable energy isle.

Bizcash is a South African company that wants to grow SMEs in SA to ensure a sustainable future for all.

Speak to our team to find out more about how we can support your business with alternative funding options. Get in touch with us on 0861 93 93 93 or email us on info@bizcashscf.co.za or contact us here.

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