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Eskom outages to take higher toll on business

Johannesburg - Power outages are the second leading cause of business interruption in South Africa, according to data gathered by Global Continuity over 20 years.

Power outages currently account for approximately 14% of cases of business interruption.

This percentage is likely to rise in the light of Eskom’s warnings, said Greg Comline, general manger of Global Continuity SA, a group company of Metrofile.

"Eskom’s declaration of a power emergency presents significant challenges for most local businesses reliant on a steady source of power, particularly ahead of the winter months when energy usage typically soars," said Comline.

"Businesses must, therefore, implement an effective business continuity management programme in order to avoid financial and legal repurcussions and harm to their reputations."

He warned that power fluctuations can also lead to damage of critical company data.

Data corruption accounts for approximately 9% of business interruption cases in South Africa, said Comline.

Electric power outages cost American business $80bn every year, according to the Lawrence Berkeley National Laboratory.

"While there are no local statistics, this extremely high figure highlights the massive cost power outages can cause," said Comline.

“Unfortunately, no insurance policy is able to keep a business running. It can pay for damages caused, but it cannot answer the phones, communicate with clients or satisfy stakeholders when a major unforeseen interruption renders the business incapable of continuing mission critical activities.”  

He said testing is key to determine whether the implementation of a business continuity management programme has been worth the effort and expenditure.

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