Eskom is challenging the South African energy regulator in court over a tariff increase the state-owned utility says isn’t sufficient, Mining Weekly reported, citing court papers.
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Finance minister Tito Mboweni says government borrowing will surge and taxes may rise to fund the troubled Eskom. Yet no plan has been announced to restructure the overstaffed company.
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.
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.