I subscribed to Sharenet’s (www.sharenet.co.za) load shedding alerts. Worked like a charm, especially during the high load shedding periods. This morning I received this mail from them (all credit where credit is due etc…) Interesting reading.
“There has been no load-shedding for several months now, and ESKOM have informed they do not expect any load-shedding to occur in 2016. This is the good news and for once, we agree with ESKOM that load-shedding probabilities are low next year.
Now for the bad news – the low probability of load-shedding in 2016 and beyond is not solely due to ESKOM getting its act together with its maintenance program and horrific building delays. It’s mostly due to a massive fall-off in DEMAND caused by the shutdown in factories and mines and other energy intensive industries, as well as a slumping SA ECONOMY.
The pullback in demand is horrific.
So despite improved and accelerated maintenance (we fully accept the great job being done by ESKOM new management here), demand continues to trend downward, now down almost 8% since the Jul 2007 peak at the height of the last economic expansion.
This is bad news because this means the economy is contracting and if this continues long enough, we will be plunged into another recession. A recession will likely affect your business or employer and it will definately affect the Rand/$ which in turn will drive up costs of imported goods. Falling earnings will affect JSE shares that are heavily exposed to the SA economy, but fortunately there are many listed shares on the JSE that are immune to the local economy and actually gain in value when the Rand falls.”
“There has been no load-shedding for several months now, and ESKOM have informed they do not expect any load-shedding to occur in 2016. This is the good news and for once, we agree with ESKOM that load-shedding probabilities are low next year.
Now for the bad news – the low probability of load-shedding in 2016 and beyond is not solely due to ESKOM getting its act together with its maintenance program and horrific building delays. It’s mostly due to a massive fall-off in DEMAND caused by the shutdown in factories and mines and other energy intensive industries, as well as a slumping SA ECONOMY.
The pullback in demand is horrific.
So despite improved and accelerated maintenance (we fully accept the great job being done by ESKOM new management here), demand continues to trend downward, now down almost 8% since the Jul 2007 peak at the height of the last economic expansion.
This is bad news because this means the economy is contracting and if this continues long enough, we will be plunged into another recession. A recession will likely affect your business or employer and it will definately affect the Rand/$ which in turn will drive up costs of imported goods. Falling earnings will affect JSE shares that are heavily exposed to the SA economy, but fortunately there are many listed shares on the JSE that are immune to the local economy and actually gain in value when the Rand falls.”