Debt-stricken state power utility Eskom reported a record loss of R20.7-billion on Tuesday, highlighting the severity of the threat it poses to South Africa’s economy.
Browsing: Energy and sustainability
Eskom, South Africa’s biggest polluter, said emissions of particulate matter that cause chronic respiratory disease are at their highest level in two decades.
Embattled state power utility Eskom will be temporarily led by Jabu Mabuza, its chairman, who will take over the roles of interim executive chairman and acting CEO starting from next month.
The state-owned power utility is set to announce its second consecutive multibillion-rand annual loss on Tuesday. The big question is, how many billions?
Eleven years after construction started on Eskom’s massive 4.8GW Kusile coal-fired power station in Mpumalanga, not one of its six 800MW generator units is currently delivering power into the grid.
South Africa’s anti-graft ombudsman is investigating Eskom’s deals with 27 independent power producers, Independent Online reported, citing a leaked document.
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.
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.