Electricity Uncertainty Increasing Risk Profile Says Institute Of Risk Management South Africa

While the country’s power grid is again unstable with another round of loadshedding, The Institute of Risk Management South Africa (IRMSA) says the prevailing climate of uncertainty remains a major risk and its incumbent on companies to have a clear internal strategy to deal with the problem.

The organisation’s CEO Pat Semenya says she is particularly concerned about new data published by the Council for Scientific and Industrial Research (CSIR) revealing that load-shedding has been the worst South Africa has ever seen.

“This is placing a huge burden on an already struggling economy and its small enterprises that are suffering the most. Coupled with the impact of COVID-19 lockdowns at the beginning of the year and the potential for more, if we experience a fourth wave, we are now sounding a red alert risk status for business, “says Semenya.

IRMSA says it has taken note of the Finance Minister’s view that a decade-long focus on fixing the existing grid has been a mistake and fully supports his call about urgent conversation that is needed to bring more power to the grid. Semenya says unless this conversation happens quickly the risk quotient will simply accelerate which will have a serious impact on growth and jobs.

IRMSA says rhetoric calling for the removal of the current Eskom leadership is not useful and is deflecting attention away from the real problem of sourcing more power for the grid.

IRMSA acknowledges that the decade long problem at Eskom will not be solved immediately and urges companies to look ahead to 2022 to make sure they have alternate power generation plans in place.

Notes Semenya, “There is every indication that this problem will be with us next year and even after that. Ahead of the festive season break risk officers need to evaluate existing plans and look at deficiencies. If that is done optimally, then part of the problem is at least resolved.”

For more information on IRMSA please visit: https://www.irmsa.org.za/