(3 minutes read)
· Eskom has a mountain to climb in addressing its power generation problems and abating the mounting debt
· The challenges faced by the power utility can be solved only within a few years, since it has to address many issues, according Sir Mick Davis, a former executive at the power utility
· the company has no choice but to collect the money owed to it by municipalities
Eskom has a mountain to climb in addressing its power generation problems and abating the mounting debt. The challenges faced by the power utility can be solved only within a few years, since it has to address many issues, according to Sir Mick Davis, a former executive at the power utility.
Eskom is saddled with a R488 billion debt burden. Therefore, the former executive of the power utility said Eskom needed to confront its operational challenges with the right skills and a shift in legislation to help ease its capacity constraints.
The former executive director at Eskom, Davis has a long association with the mining industry. He said the company has no choice but to collect the money owed to it by municipalities. Eskom’s municipal debt currently stands at a staggering R31.4 billion, and the utility has in the recent months had to resolve to attaching assets and bank accounts of some defaulting municipalities.
