Anc Under Pressure With Eskom Crisis
In South Africas electricity company Eskom, the debt-ridden, crisis-ridden utility is struggling to keep up with the fast-moving economics of the power industry.
Meanwhile, Eskom, an electricity utility, is struggling to keep its lights on and fund network expansions amidst widespread concerns over coal plant and mine shutdown impacts. The pressure is on Eskom, the South African government-owned utility that generates almost 95% of the countrys power (and 45% of the African total).
Under the proposed agreement, Eskom, South Africas state-owned utility, would get financing to facilitate a process of decarbonization and transitioning to a renewable-based electricity sector. Show Source Texts
If Eskoms financial crisis is alleviated, as its former corrupt executives and South Africas government keep promising, it can, and should, be pressed into building up renewables on its own.
Eskom does not have the financial wherewithal, the ability to borrow, or project management skills, to devise plans for South Africas energy future. Show Source Texts
Despite in-house audits and modelling that tested Eskoms FIFA World Cup preparations -- including an independent audit conducted by Korea Electricity Corp., which hosted the 2002 World Cup alongside Japan -- Eskom remains cautious on supplies, acknowledging the countrys margins on reserves are not as large as it wants.
Analysts and executives at Eskom, as well as South Africa, predicted in a December 1998 report that Eskom would be running short of electricity reserves by 2007, if no measures were taken to avert this. Eskom was criticized for exporting power to neighboring African states, without having the ability to supply South African needs. Show Source Texts
Like other government-owned enterprises, Eskom was used to deploy cadres, and labour and government pressure likely meant that Eskom was heavily constrained from running economic operations.
The dead hand of our government puts pressure on Eskom in making decisions about how it should go about its business, who it should hire, and what it should buy.
The ANC has failed on its earlier promises to spark economic growth and address a 29% unemployment rate, in large part because the state-owned electricity utility Eskom cannot produce enough electricity from its aging, poorly maintained plants to meet demand. Show Source Texts
South Africa is facing a crippling power crisis, with rolling blackouts - or brownouts, in the archaic bureaucratic jargon - and fears the electricity grid may crumble if more of state-owned company Eskoms ageing plants fail.
The curtailment has put South Africas already-stressed finances further under strain, and raised the possibility the country will lose its only investment-grade rating from Moodys Investors Service.
Since much of Eskoms long-term debt is guaranteed by the government, it would place an enormous burden on our government, and likely South Africas financial system. Show Source Texts
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