File: Moody's is the only one of three major ratings agencies holding South Africa on investment grade.
JOHANNESBURG - Ratings agency Moody's has painted a bleak picture of Eskom's future.
It says that its systems are under extreme pressure and the reserve margin will remain tight until the mid-2020s.
In a research announcement, Moody's says Eskom will remain the dominant supplier, but will become less important.
The ratings agency also predicts that the country's heavy reliance on coal will change.
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Renewable resources and gas will play a bigger role.
Although Eskom is addressing its challenges, a historic lack of investment means the situation will take time to improve.
Consumers are likely to bear the brunt of higher costs.
Moody's says government has a strong incentive to improve the utility's financial position.