Electricity price increase a double whammy for SMEs

Sanjeev Orie Small business owners should brace themselves for a two-fold setback due to the current electricity tariff increase which impacts on profits and ultimately the spending power of consumers. Sanjeev Orie, Head of Business Value Adds at FNB Business says because of the tariff increase, the use and availability of energy has yet again been put in the spotlight as one of the biggest challenges that limits the productivity and growth of small businesses in the country. “April will be a particularly difficult month as SMEs come to terms with the 25 basis points hike in interest rates, followed by the increase in fuel levy and electricity tariffs. Moreover, the fact that electricity price increases will have a direct impact on consumers is not making the situation any easier,” says Orie. “Not long ago businesses struggled with load shedding as power cuts disrupted operations, resulting in the loss of revenue,” adds Orie. “With power supply having ...