Be prepared for Eskom’s insolvency

South Africa is on the brink as Eskom admits that it is broke.

NEWS reports claimed at the weekend that Eskom had only enough money to sustain it for 21 days and the utility’s management admitted that money, or lack of it, was partly responsible for the country’s load shedding debacle.

It seems the truth of the matter is that Eskom is stone broke having spent billions on expensive diesel to fire up the gas turbines which keep the lights burning.

Media reports state that the power utility is producing diesel-generated power at R3 a kilowatt hour compared to the price of 62c a kilowatt hour of coal-fired electricity.

Electricity is sold at 70c a kilowatt hour and you don’t need to be Einstein to see that this business, yes, it is a business, is on a hiding to nothing.

Correction: we, the end users, are on a hiding to nothing because some solutions will need to be put in place urgently. The first will be load shedding on a huge scale and then they will up the price.

Some cynics say Eskom will keep this up, with government bailouts of billions of Rands, until after next year’s elections. If government can look good up to that point, they hope to emerge victorious once again.

But there is nothing much that Joe Soap can do about it except to be prepared. There are many things we can do to make living in the dark bearable.

Courtesy of Eskom’s website, here are some useful tips:

Eskom advised customers to check load shedding schedules as any outage that does not coincide with these must be treated as a fault and reported.

How did we come to this? Stupid question really. Hopefully along the way, we will be told by our esteemed leaders exactly what is going on and what we can expect, instead of playing political games and scoring points.

This double speak and clouding issues in euphemisms doesn’t dispel the sense of deep foreboding that most of us feel.

On the bright side, TV blackouts could lead to better family unity. Stock up on board games and chill outdoors on clear nights.

Exit mobile version