South African Power Provider Eskom is reported to be technically bankrupt according to the portfolio committee of the Country’s Public Enterprise.
Eskom generates, transmits and distributes approximately 95% of the electricity used in South Africa and approximately 45% of the electricity used in Africa.
But there are fears the company will not operate beyond April due to its financial situation.
These details about Eskom were revealed at a hearing by the country’s department of public enterprise hearing on Wednesday.
Reports suggest although Eskom’s revenue grew more than four times since 2007, as a result of o tariff increases, the expenses of primary energy and employees grew faster than revenue growth.
For instance employees grew from 32,000 in 2007 to 48,000 by 2018 with the associated costs growing from $691 million to $2 billion.
The latest development is coming on the back of the roll out of the third phase of Eskom’s load shedding announced on Tuesday.
A statement from the power provider said “We have activated contingency measures in the event that employees participate in the strike action and should there be further impact on our operations.”
The regulator says it will continue to appeal to residents and businesses to use electricity sparingly during this period.
Source: Africafeeds.com
