South Africa’s struggling state-owned power utility said it will implement a second day of controlled blackouts to prevent a total collapse of the electricity grid amid a shortage of capacity.
Eskom, which provides about 95% of the nation’s electricity, is still experiencing “severe generation capacity challenges”, it said in a statement late on Wednesday. The cuts are “a measure of last resort”, it said.
The rand weakened on Wednesday after the utility announced that it would cut 2,GW from the grid due to unplanned breakdowns at its plants. Eskom last implemented load shedding more than six months ago.
The troubled utility, seen as the biggest threat to the economy, has amassed R450-billion of debt and relies on state bailouts to remain solvent. It’s battled to meet demand for electricity because most of its plants are old and have been poorly maintained.
The government has said it will announce plans by the end of the month to restructure Eskom into three operating units and reorganise its debt. Cabinet approved a master plan that will determine the country’s electricity generation mix, mineral resources & energy minister Gwede Mantashe said on Wednesday. — Reported by Liezel Hill, (c) 2019 Bloomberg LP