Circular 5 of 2023 - Impact of extended power supply failure/loadshedding to the consumer credit market

CIRCULAR 05 OF 2023 1.BACKGROUND The National Credit Regulator (“NCR”) is conducting an impact analysis on the possibility and resultant consequences of the extended and continuous loadshedding for the consumer credit market. 1.1. We use the term “extended and continuous loadshedding” to describe a situation where there is a power outage that lasts for a period of time ranging from 1 day to 14 days before the system is restored. 2.PURPOSE The purpose of the impact analysis is to understand the preparedness of the credit industry to operate given the extended and continuous load shedding and the impact of this to the provision of the credit industry related services. 2.1. The consequences of several national disasters in recent years, such as the COVID-19 pandemic, the flooding, and the civil unrest in July 2021 in certain parts of the country, have created the need for industries to find proactive measures to prepare for any national crisis. 2.2. Given the current continuous power supply challenges in South Africa, mitigation for extended power supply failure needs to be factored into strategic planning within the consumer credit industry. Impact of extended power supply failure/loadshedding to the consumer credit market Number 05| September 2023 1 Disclaimer: While the NCR has taken reasonable care to ensure the factual accuracy of this Circular, it cannot guarantee such accuracy, especially with regards to future events. Accordingly, NCR does not accept any liability for damages incurred by any party as a result of decisions or actions taken on the basis of information supplied in this Circular.

2 Disclaimer: While the NCR has taken reasonable care to ensure the factual accuracy of this Circular, it cannot guarantee such accuracy, especially with regards to future events. Accordingly, NCR does not accept any liability for damages incurred by any party as a result of decisions or actions taken on the basis of information supplied in this Circular. Number 05| September 2023 COMMENTS MUST BE SUBMITTED AS FOLLOWS: Mr Bongani Gwexe on bgwexe@ncr.org.za and Ms Mmalefa Motaung on mmotaung@ncr.org.za by close of business on Monday, 6 October 2023. The NCR requests all its registrants to participate by submitting comments as these findings may be used to inform certain decisions that may affect all registrants. 3. QUESTIONNAIRE IMPACT OF LOADSHEDDING QUESTIONNAIRE - BANKING SECTOR IMPACT OF LOADSHEDDING QUESTIONNAIRE - RETAIL SECTOR IMPACT OF LOADSHEDDING QUESTIONNAIRE - GENERIC The NCR hereby invites stakeholders to submit comments and inputs on the attached questionnaires applicable to category of operation (i.e Bank, Retailers, etc). Click on the relevant questionnaire to access.