ANALYSIS
Eskom is 100 years old. The power utility’s not-so-celebrated centenary comes a week after the government threw it a long-wished-for lifeline in the form of a R254 billion debt relief package.
The debt takeover promises to alleviate the extreme pressure on Eskom’s balance sheet — which has fed into a 15-year energy crisis, threatening to break the back of the country’s already fragile economy.
The treasury’s proposed debt relief, which has a number of conditions attached to it, is also aimed at “aiding the restructuring of the electricity market to help South Africa establish a stable, uninterrupted power supply as it transitions to a clean energy future”.
But analysts have warned that this and other interventions to restructure the country’s electricity market do not guarantee energy security. This is as privatisation imperils South Africa’s energy sovereignty, leaving consumers at the mercy of the market’s whims.
Support the journalism that helps you navigate your world
Looking for another offer?
Your M&G
Did you enjoy this feature? The Mail & Guardian has a proud 35 year history of producing South Africa’s best-informed, independent journalism. Since the very beginning, we have relied on the support of paying subscribers to fund our writers.
Doing so guarantees our editorial independence and enables us to survive no matter what the bad actors, the economy or Covid-19 throws at us. Want to support the Mail & Guardian? You can get unlimited access to all of stories, plus our weekly crossword and subscriber events from just R99 a month.
