South Africa’s decision to more than double its financial support for Eskom is “credit negative” for the sovereign rating as it’s an additional drain on the budget, Moody’s Investors Service said.
Browsing: Energy and sustainability
A financial crisis confronting South Africa’s state power utility has become a national debt problem.
South Africa may increase its borrowing plans following the latest bailout announced for struggling state-owned power utility Eskom, finance minister Tito Mboweni told MPs on Tuesday.
Karen Breytenbach, who oversaw the expansion of South Africa’s privately owned renewable energy projects, said she was asked to vacate her job about nine months before her contract expires.
Eskom has advertised for a new CEO two months after Phakamani Hadebe announced he’d vacate the post.
Of all the executives, government officials and consultants being recruited to tackle the mammoth task of rescuing South Africa’s state power utility, the toughest task could fall to the person who has to take it apart.
South Africa’s indebted power utility Eskom was already searching for a CEO and an executive to lead a turnaround of the company. It will now have to cast its net even wider to include a treasurer.
While Nedbank CEO Mike Brown is optimistic, the government will have to make hard decisions, with the burden ultimately falling on the South African public to shoulder the bill.
Eskom has only managed to meet peak demand with its own fleet on 49 of the 106 days between the most recent instance of load shedding on 23 March, and 7 July.
Eskom said pollution reduction equipment at its biggest operational plant hasn’t been working properly since early last year.