Sharing the light

Florida is experiencing its very own fun and games with nuclear power station shutdown, blackouts and unhappy Dwarves and Princesses.  Ok, so apparently the Dwarves and Princesses were mostly unaffected.

Without wishing the hardship on  the Floridians, I’m pleased to hear the news in that it shows that systemic risk in electricity grids is a global operational risk and not limited to “our” South Africa. As a nation we seem very ready to blame ourselves. My time in Lebanon opened my eyes to the hassles of an irregular power supply. (Of course the Lebanese in typical fashion manage admirably in the face of these are larger hassles and inconveniences due to their nature.)

Having said that it is a global problem does not change the facts of very poor decisions and lack of foresight on behalf of Eskom management and our government. Mistakes were made. The clarity with which we see the mistakes now must be recognised at least partly as 20/20 hindsight.

Published by David Kirk

The opinions expressed on this site are those of the author and other commenters and are not necessarily those of his employer or any other organisation. David Kirk runs Milliman’s actuarial consulting practice in Africa. He is an actuary and is the creator of New Business Margin on Revenue. He specialises in risk and capital management, regulatory change and insurance strategy . He also has extensive experience in embedded value reporting, insurance-related IFRS and share option valuation.