City Power’s load reductions could affect businesses’ output and profits

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City Power’s load reductions could affect businesses’ output and profits
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City Power implemented load reductions in parts of Johannesburg where high usage levels threaten to overload the system.

An electrical engineer is warning that City Power’s load reductions could affect businesses’ output and their profits although its intention is to protect the grid from overload and total collapse.

“Businesses are keenly aware that when the power goes out, production stops, resulting in reduced output and lower profitability. However, for a number of companies operating in Johannesburg’s industrial sector, the switch-off of machinery could render them unable to operate for extended periods as it can take equipment anywhere from a few hours to more than 24 hours to return to operation.”

“Moreover, this could have significant knock-on effects, especially as the city’s businesses enable it to contribute around 14.9% to the national Gross Domestic Product and 40% to the Gauteng province, while also employing approximately 2.13 million people.

For example, this could help companies change when they use the most power by restructuring their operations, determine which processes should happen when in order to minimise peaks and dips in daily power usage and adjust how shift structures work, he says.

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