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Stage 6 load shedding a major blow to growth, tax revenue – economists

Stage 6 load shedding a major blow to growth, tax revenue – economists

According to the utility stage 6 load shedding allows for up to 6 000MW to be cut from the national grid.  It downgraded the load shedding level back to stage 4 at 10pm, but warned that cuts were likely for the rest of the week as the Eskom continues to battle severe capacity constraints caused by unplanned outages and flooding.

President Cyril Ramaphosa, in a statement, said that public anger over the ‘devastating’ power cuts was understandable, while Minister of Public Enterprises Pravin Gordhan apologised on eNCA.

“With Eskom confirming a stage 6 black out from today, one thing is certain: the SA economy is now condemned to recession,” economist and CEO of Pan-African Investment and Research Services Dr iraj Abedian said in a tweet.

Abedian called for Eskom to be placed into voluntary business rescue, as happened to debt-laden national airline SAA last week.

“Clearly after 11 years the Cabinet hasn’t learned that Eskom is a broken machine, the longer it focuses on rescuing Eskom the more the economy will weaken, jobs will be lost and brand SA will suffer. Free the energy sector, cities can generate electricity, firms can. Stop the madness.”

DA leader John Steenhuisen, in statement on Monday evening, said the implementation of stage 6 power cuts was “devastating news for our already struggling economy and fatal to both economic growth and job creation”.

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