Because it is now a known fact that SA's national electricity grid is unstable, businesses will struggle to lay the blame on Eskom, should a law suit originate from a power failure, warned Simon Colman, litigations risks executive at RBS.
He said Thursday’s electricity outages significantly affected businesses across the country.
"Although businesses may be aware of the physical risks associated with a power failure, they are often unaware of the various legal liability issues that also arise in the inevitable darkness," said Colman.
He said previously, South African business owners may have been able to rely on the defence that power supply is out of their control.
However, because it is now a known fact that the national grid is unstable, businesses will struggle to blame on Eskom in court.
“Businesses have a duty of care owed to their customers to ensure that they have back-ups or safety measures in place," said Colman.
"They should, therefore, ensure that they have adequate liability policies in place should these claims occur.”
Renewable energy
The rolling power cuts on Thursday highlights the pertinent need for South Africa to place more importance on investment into renewable energy sources, according to Arthur Chien, CEO of Talesun Energy.
"South Africa’s national electricity grid is under tremendous pressure as a result of the existing production capacity not meeting the growing demand for electricity, and consequently the country needs aid from alternative energy sources," said Chien.
He said investing in renewables makes good business sense and will assist in reducing the significant constraints placed on economic growth and job creation.
He said Thursday’s electricity outages significantly affected businesses across the country.
"Although businesses may be aware of the physical risks associated with a power failure, they are often unaware of the various legal liability issues that also arise in the inevitable darkness," said Colman.
He said previously, South African business owners may have been able to rely on the defence that power supply is out of their control.
However, because it is now a known fact that the national grid is unstable, businesses will struggle to blame on Eskom in court.
“Businesses have a duty of care owed to their customers to ensure that they have back-ups or safety measures in place," said Colman.
"They should, therefore, ensure that they have adequate liability policies in place should these claims occur.”
Renewable energy
The rolling power cuts on Thursday highlights the pertinent need for South Africa to place more importance on investment into renewable energy sources, according to Arthur Chien, CEO of Talesun Energy.
"South Africa’s national electricity grid is under tremendous pressure as a result of the existing production capacity not meeting the growing demand for electricity, and consequently the country needs aid from alternative energy sources," said Chien.
He said investing in renewables makes good business sense and will assist in reducing the significant constraints placed on economic growth and job creation.