In January, The International Monetary Fund predicted that the South African economy will see a low growth rate of 2.1% in 2015 should load-shedding persist.
The decision to hike electricity tariffs by 13% in April 2015 places another hurdle in front of the economic growth of the country.
Mybroadband.com reported that when stage 1 load shedding is implemented, ZAR20 billion ($2 billion) is lost over a 20 day period consisting of a ten hour blackout a day.
When load shedding moves to stage 2 the monthly cost jumps to ZAR40 billion ($4 billion) and at stage 3 the cost peaks at ZAR80 billion ($8 billion).
Energy expert Chris Yelland said that “these costs to the productive economy for load shedding in [South Africa] are based on a cost of unserved energy of ZAR100 [$9] per kWh”.
“The cost of unserved energy to the productive economy in SA caused by this Eskom “human error” at Koeberg is estimated to be ZAR7.5 billion [$604 million]”, Yelland continued.
The additional cost of diesel needed when technical faults occur, amount to an estimated ZAR250 million ($21 million), according to Yelland.
With both Medupi and Khusile falling four years behind schedule immediate solutions are needed to prevent the country from a complete collapse.
(Pic Credits: haikudeck)