As we are all painfully aware, Eskom’s capacity generation shortages have led to the worst load shedding since 2019. At the beginning of July, Stage 6 load shedding caused significant damage to the country’s economy, with over R4 billion wiped from the GDP for each day it continued, to say nothing of the considerable inconvenience to members of the public in their daily lives.
What about alternative power supplies?
Experts say the rapid roll-out of small-scale solar and wind power systems could alleviate Eskom’s burden. Based on statistics of South Africa’s middle-class and wealthier sectors, up to a million households could install an average of 600W of solar. That adds the equivalent of 600MW to the grid. Then institutions can join in. “Half a million small businesses could potentially add another 1kW of solar each, adding 500MW,” according to a report in the Mail & Guardian. Indeed, it is predicted that load shedding will continue for the foreseeable future, leaving many of us seeking alternative power supplies to supplement these shortfalls independently.
There are many products available in the market to choose from
It is important to ensure that your chosen product is SABS approved and carries a warranty. Alternative power supply systems are expensive, so make sure that the sum insured is adequate to avoid averaging being applied in the event of a claim.
Your short-term insurance: Important considerations when installing alternative power supply
Inform your insurance company of any installations. This ensures that the policy provides adequate cover for your systems. Make use of accredited electricians when installing an alternative power supply system. The installation should be accompanied by a certificate of compliance from the electrician. The proof of certification will be required at claims stage to prevent the claim being repudiated.
Ensure that the equipment is used correctly and operated in accordance with regulations. This will reduce the risk of accidents which could result in damage or fire that might destroy your entire property. Each loss is reviewed on its own merits, and all policies require the policyholder to ensure the correct installation, maintenance and operation of the equipment.
Understand your policy wording and make sure that the equipment is adequately insured
Get in touch with your short-term insurance adviser to ensure that your policy conditions are met, and you are not negatively affected at claims stage.
Power Surges?
Our short-term insurance specialist, Debbie Smart, tells us that power surges have become a hot topic now as there has been a significant spike in claims due to surges following periods of load shedding.
Debbie says there is the possibility that power surge losses may be excluded from cover in the future and that she has received notifications recently from Hollard, Santam & Discovery, that they will be reducing their exposure to these types of losses by implementing higher excesses, increased rates and reduced limits.
Please contact Debbie direct on (c) 082 551 8146 or (t) 011 656 2910 for more information.