Eskom, an embattled utility fights back
Developments at Eskom are picking up and it’s good to receive news on how South Africa’s utility is proactively dealing with its power struggles.
For too long, the utility has dealt with non-payment for the provision of bulk electricity to municipalities across the country. It’s exacerbated Eskom’s financial woes but the utility has never really been able to solve this rising threat to its balance sheet.
Now for the first time, for an outstanding whopping debt of R3.4 billion, Eskom has resorted to attaching a municipality’s bank account. This should be a matter of course to relieve the debt-burned utility’s coffers but, take note, this won’t stop rising electricity tariffs. Another threat now being dealt with is the lack of generation capacity—largely due to ageing infrastructure and mismanagement at power plants.
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