A proposal by the biggest owner of Eskom’s debt to convert its R88-billion holding into equity has become a rescue option as South Africa seeks to restructure the troubled power utility.
Browsing: Energy and sustainability
South Africa’s troubled state-owned power utility has yet another thing to worry about – a big carbon tax bill expected to kick in from 2023.
A new fixed surcharge of R200/month means that City of Johannesburg residents who use prepaid electricity will see actual increases of up to 66% in the cost of power from this month.
The risk of South Africa’s struggling state power utility going bust doesn’t appear to faze one of its biggest creditors: the World Bank.
Government is putting the final touches on a R230-billion bailout package intended to get its debt-stricken state power utility back on track. Except it won’t be nearly enough.
President Cyril Ramaphosa is considering whether to back a proposal to improve troubled Eskom’s debt terms by closing polluting coal plants early to make way for renewable energy.
The pressure on Eskom to curb emissions is yet another reason why the utility has become the biggest headache for President Cyril Ramaphosa.
South Africa has laid out a timeline for the restructuring of Eskom and pledged that creditors of the state-owned electricity company won’t suffer losses, according to a fund manager.
President Cyril Ramaphosa said government will soon give the embattled state power utility “a significant portion” of the R230-billion it needs over the next decade to remain solvent.
South Africa simply has to rescue the nation’s distressed power utility. Even though it can’t afford to.