Eskom has financial and operational problems: expert

The ANC has released a statement saying maintenance at Eskom is a priority but an expert warns the utility has a financial crisis as well as operational problems. Courtesy of #DStv403

JOHANNESBURG - The ANC has released a statement saying maintenance at Eskom is a priority but an expert warns the utility has a financial crisis as well as operational problems.

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Senior Economics Lecturer at the University of Johannesburg, Sean Muller says a viable solution is needed to address both the utilities financial crisis and operational problems.

The ANC has spoken of an introduction of independent power producers.

“The problem with the ANC statement is like all these solutions it says nothing about finances, it says nothing about the financial implications for Eskom of decentralised power generation, so decentralised power generation means big business like these mines can produce their power,” said Muller.

“In many ways that's great, and that's an important part of future energy systems but right now when there isn't that level of pressure on Eskom that will create load-shedding, Eskom is losing revenue and its losing revenue on power plants that it's already invested in and that's gonna become the public's problem, so the businesses can protect themselves, creating their own power, but Eskom is not getting revenue, will have to find that money elsewhere which means higher electric tariffs or more bailouts.”

Source
eNCA