Why Eskom was always doomed to fail

[BusinessTech]

Why Eskom was always doomed to fail

Eskom is operating on a century-old business model that is out of date and out of time, according to UFS analyst JP Landman, who says that despite a concerted push back against plans to split the company, the only way to go is forward.

 

[Milano]

Nothing wrong with the business model. As prices increase and consumption decreases so you increase prices further thus increasing the bailout size thereby maintaining jobs and gravy. The bailout source is infinite thus the business model is sound. The ANC, EFF, BLF, SACP, COSATU cannot all be wrong.

 

[Lew Skannen]

BS. AA, BEE and ANC doomed it.

 

[ToxicBunny]

No JP, Eskom was not always doomed to fail and the business model was perfectly acceptable and would still be perfectly acceptable if it hadn't been for cadre deployment and the rampant pillaging of the entity.

 

[rietrot]

No JP, Eskom was not always doomed to fail and the business model was perfectly acceptable and would still be perfectly acceptable if it hadn't been for cadre deployment and the rampant pillaging of the entity.

Such monopolies always run into issues. You need competition in the market.

 

[ToxicBunny]

Such monopolies always run into issues. You need competition in the market.

Possibly yes.. But eskom was not doomed to fail based on its business model and all of jps reasoning in the article relates to Cadre deployment and pillaging of the entity.

 

[grok]

Such monopolies always run into issues. You need competition in the market.

Funny how it was doing perfectly fine during the National Party's reign..

Equating the trouble Eskom is experiencing to normal business challenges is dishonest tho, Eskom has been systematically hollowed out by the politically connected who couldn't give a damn about production issues. No amount of competition will fix that.