Why South Africa is using powerships to combat energy shortage

Swa

Honorary Master
Joined
May 4, 2012
Messages
27,542
It seems like such better idea now to not have had any government bailouts or assistance offered to Eskom, after all these years and money wasted without Eskom being able to pull themselves out of the dilemma that started the loadshedding in the first place. What a huge drain on the SA socio-economic indicators it has been and continues to be.
Why they don't just let IPPs take care of generation entirely I don't know. Only thing that comes to mind is less opportunity for corruption.
 

mypetcow

Well-Known Member
Joined
Oct 1, 2006
Messages
190
It seems like such better idea now to not have had any government bailouts or assistance offered to Eskom, after all these years and money wasted without Eskom being able to pull themselves out of the dilemma that started the loadshedding in the first place. What a huge drain on the SA socio-economic indicators it has been and continues to be.
As much as I would like to agree with you, Eskom cannot be allowed to fail and therefore it will be bailed out over and over as often as necessary. Simply not having power for South Africa would be a disaster. It's not like anyone could easily take over the existing 35,000 MW of current power plants nor could any private enterprises or consortium put something of this magnitude together to replace this generation capacity in a reasonable amount of time.

Therefore the cost of the bailout(s) is tiny in comparison to the ramifications if it were to fail. Especially the socio-economic ones you mention.

Whether Eskom has in the past and whether it is taking advantage of this little peculiarity of the situation today is another thing entirely.
 
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