Eskom’s financial woes partly to blame for blackouts
Eskom’s financial issues are partly responsible for the country’s rolling blackouts, it said on Friday.
“Eskom does have financial issues. It is true that we are having financial crunch and we are currently in discussion with government to get us out of this financial difficulty,” spokesman Khulu Phasiwe said.
“Last year we indicated that we need R50 billion in terms of the work we are doing. For operational issues.”
He said the government had indicated it would provide Eskom with a cash injection of R20bn to help with operational issues, but that this was not enough.
Eskom was working on a number of options to get the balance of the money it needed to complete work at Medupi, Kusile, and Ingula power stations.
Phasiwe said Eskom had already issued bonds in both local and international markets and had approached other institutions for funds.
Europe and the African development bank had already lent money to the power utility.
“We need money to make sure that we finish the projects we are currently busy building,” he said.
When asked if Eskom’s financial issues were to blame for the rolling blackouts, Phasiwe said: “Partly, I would say yes.
“We need money to buy parts for the maintenance, but that is not the only reason. Maintenance in the previous years, from about 2010, has been deferred.”
On Friday, the Mail&Guardian reported that Eskom was 21 days from going broke.
Eskom has started load shedding in stage 1 as of 11:05.
Stage one allows for up to 1000MW of the national load to be shed, stage two for up to 2000MW and stage three for up to 4000MW.
