Eskom “going under very, very fast”

beans100

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Bad news: Eskom goes down > ANC throws more money towards them in an attempt to "bail" them out > TAX goes up to levy the expense > citizens goes more hungry > citizens vote for ANC again > WRR
 

supersunbird

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Eskom lashed out at reports that it was “broke”, saying it was confident it could keep going.

“The company is confident that it will maintain sufficient liquidity to support its operations,” said Eskom.
That's exactly what SAA said as well..
 

reactor_sa

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Can save R1trillion by canning the nuclear idea. But whatever. ANC going to do what the ANC does best - steal, pillage, drink blue label.
 

Voicy

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Can save R1trillion by canning the nuclear idea. But whatever. ANC going to do what the ANC does best - steal, pillage, drink blue label.
Don't be silly. How could you in good conscience can the nuclear deal if you owe the Russians? That would be (political) suicide.
 

Vrotappel

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Time to privatize it and get the ANC out. It worked wonders for Telkom.
 

Nod

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Split power generation and distribution. Would be a good start
 

lsheed_cn

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Only unlike SAA, Eskom has monopoly power and can just hike their rates into oblivion without losing many customers.
The important customers are the paying customers.

In Eskom's case, the paying customers are starting to realize that they can generate and store their own power for cheaper than Eskom can, and more reliably.

Soon, there may not be any paying customers left...
 

Eric

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Time to privatize it and get the ANC out. It worked wonders for Telkom.
One could argue that's when Eskom started going downhill (when Telkom were privatised). Our current government is inefficient (to be nice), hence parastatals will never be efficient.
 

SoTrue

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Split power generation and distribution. Would be a good start
That will just create two monopolies, with more costs added. There has to be effective competition for prices to drop. Effective competition is for example where the consumer can choose from more than one power/energy supply provider. If that is not possible, at least the local municipality should have a choice of suppliers.
 

f2wohf

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Only unlike SAA, Eskom has monopoly power and can just hike their rates into oblivion without losing many customers.
And without mentioning that if SAA collapses, it has very little direct impact on the global economy, except their employees and suppliers.

On the other hand, if Eskom doesn’t pay salaries, I can foresee power plants being shut down, load shedding, the entire industry and mining being held to ransom and the economy going down in no time.
 

Nod

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That will just create two monopolies, with more costs added. There has to be effective competition for prices to drop. Effective competition is for example where the consumer can choose from more than one power/energy supply provider. If that is not possible, at least the local municipality should have a choice of suppliers.
It would be a start, as mentioned.
Both, or only the generation part could be privatised.
If the distribution part stays with the government, then it should not be profit driven. Its sole reason for existence should be distribution of power as efficiently as possible. A budget should be applied for, for operational and maintenance expenses with increases and performance bonuses as needed.
 

f2wohf

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That will just create two monopolies, with more costs added. There has to be effective competition for prices to drop. Effective competition is for example where the consumer can choose from more than one power/energy supply provider. If that is not possible, at least the local municipality should have a choice of suppliers.
A monopoly in transmission is not necessarily bad if managed properly (look at the European examples), leave generation and distribution in the open market and it does make a very competitive industry.

Transmission is not really worth being competitive, it just doubles costs.
 

f2wohf

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But its not going ahead. At least its not in the pipeline anytime soon.
+1

It’s not going to happen anytime before 2019.

The RFI and RFQ processes are just too long and will be blocked in court.
 

Ancalagon

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I remember when it was considered a crazy conspiracy theory that the load shedding problems were created by Eskom in order to get the nuclear deal through.

Now we all know the truth, but unfortunately we have no choice but to watch it slide down.
 

maumau

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Eskom “going under very, very fast”

Code for "expect huge increases".
 
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