Eskom “going under very, very fast”

The City Press has reported that Eskom is wasting billions on power stations when there is no demand, and is therefore “going down and under very, very fast”.

This is according to energy adviser in the presidency Silas Zimu, who said we are not going to have the same Eskom we had 10 years ago.

Eskom faces big financial challenges, which has seen the power utility ask for large tariff increases.

In July, the Sunday Times reported that Eskom was running out of money and it only had enough to last three months.

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.

How to save billions

According to a report by Meridian Economics, Eskom can save between R15-R17 billion by decommissioning old power stations and halting the planned construction of two Kusile units.

The report argues that the additional power from the two Kusile units is not needed, as demand for electricity is not increasing as previously predicted.

The cost-saving interventions would therefore not risk the security of South Africa’s power supply.

Now read: We’re not broke – Eskom

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Eskom “going under very, very fast”