Eskom plans massive electricity cut in South Africa

South Africa’s state-owned power utility will cut 2,000 megawatts of supply from the national grid because it lost additional generating units overnight.

Eskom Holdings SOC Ltd. had earlier said it would cut 1,000 megawatts through rotational blackouts, known locally as load-shedding, the Johannesburg-based utility said in a statement on its website Friday.

The company that’s Africa’s biggest power producer is struggling with declining demand, aging plants and delays in new facilities as it takes steps to emerge from multiple scandals involving graft and mismanagement.

The company, which has been identified by ratings agencies as a key threat to South Africa’s economy, is discussing its turnaround plan with the Department of Public Enterprises and President Cyril Ramaphosa.

First-half profit plunged 89 percent and the company’s debt burden is “impossibly high,” Chairman Jabu Mabuza said this week.

Eskom implemented Stage 1 rotational load-shedding yesterday, with rolling power cuts taking place from 12:00 to 22:00.

It said these outages were a result of an increase in generation plants being out for both planned maintenance and unplanned outages.

Reporting with Bloomberg.

Now read: Eskom starts Stage 1 load-shedding

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Eskom plans massive electricity cut in South Africa