Permanent power outages are the new normal in South Africa

Electricity shortages are a “permanent new reality” for South African businesses, according to retailer Pick & Pay Stores Ltd. The associated costs are significant.

Despite the worst national power outages on record, the country’s largest food stores have upped their investments in standby generators, rooftop solar panels, and refrigerated trailer trucks.

Shoprite Holdings Ltd. said last week that purchasing diesel to keep stores open during the most severe rolling blackouts, known locally as loadshedding, cost an extra 560 million rand ($32 million) in the six months ending Jan. 1.

Pick & Pay said Wednesday that it spent an additional 346 million rand on fuel to power generators in stores during the first ten months of its fiscal year.

The power outages may compel it to reprioritize capital investment in an energy resilience strategy, deferring expenditure on other priorities.

The method will assist Pick & Pay in mitigating consumer “inconvenience” and reducing food waste, according to the company. The stock dropped as high as 8.1%, the most since October, before recovering to trade 5.1% down at 12:14 p.m. local time.

“The government needs rapidly to come forward with a sustainable plan to solve the electricity crisis, including by taking every step possible to ease the way for businesses to generate and use their own sustainable energy,” Pick n Pay said. Still, it’s “clear that progress will not be rapid.”