Who pays if the Eskom grid fails?

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Who pays if the Eskom grid fails? - It is unlikely that insurance will cover the damage or that the government will bail out companies

, Andiswa Madolo, Sasria’s marketing manager, said it would not be liable should there be complete blackouts. “Sasria does not cover consequential loss as a result of a severe level of load-shedding or complete blackout.”

Setting aside the impact of a total grid collapse, load-shedding — which Eskom applies to avoid such a collapse — already comes with damaging interruptions to business activity, which has seen many companies incurring financial losses. He said businesses would stop operating in the event of grid failure although, by now, after 15 years of grappling with rolling power cuts, many have armed themselves with backup power sources, such as generators or renewable energy. But, he noted, “if the grid goes down, the renewables would also go down”.

 

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