Eskom has a massive problem - beyond corruption and errant CEOs
6 July 2017
Background
So much media attention has been paid to widespread allegations of fraud at Eskom and to the antics of some of its recent permanent and acting CEOs, that its difficulties in simply keeping the business going, seem to have disappeared from sight. Briefly put, Eskom has a huge problem in that it has a steadily growing surplus of available electricity. The gap between supply and demand is widening to the extent that it is not clear how Eskom can survive financially unless it changes course very abruptly or unless the Government (and by implication, the taxpayer) bails it out.
Some recent articles have dealt with these issues in detail, [1] but they have not received the attention they deserve. Maybe it’s all just too complicated for an easy read. Without going into too much detail, we therefore thought that we should try to present the essentials in a digestible manner.
Summary of the current situation