Eskom headed for distress, bailout

Engineering News, 11 April, 2014.

State-owned power utility Eskom will likely need a R50-billion to R100-billion bailout if it is to survive over the next few years, Shava Mining Enterprise’s Andrew Kinghorn warned on Friday.

The power utility was in distress as it battled to keep its head above financial water and South Africa’s lights on, with the country heading for “unavoidable” national debt of 44% – from a debt of 27.3% of gross domestic product in 2008.

For Eskom to stay in business, a charge of R1.20/kWh was required, despite tripling the price over the past few years to the current cap of 70c/kWh.


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