Eskom too big to fail

South Africa will announce a package of measures to stabilise its ailing power utility.

07 February 2019 | Energy

Cyril Ramaphosa; President of South Africa: “It is too important and is too big to fail. And we will not allow it to fail.”

Eskom was too big and too important for South Africa to be allowed to fail, President Cyril Ramaphosa said on Tuesday.

The troubled South African state-owned power utility is expected to post a R20-billion loss for the financial year to March, up from the R15-billion forecast during the mid-year results, as overall expenses widened during the period.

Speaking at the Mining Indaba in Cape Town, Ramaphosa admitted that Eskom was currently facing significant operational, financial and structural challenges, but said government was giving detailed attention to the crisis.

"The energy, transport and water sectors, all of which are important for the mining industry, represent the bulk of the infrastructure investment spending plans that the government is planning for the years ahead," Ramaphosa said.

"Eskom's contribution to the health of our economy is too great for it to be allowed to fail. It is too important and is too big to fail. And we will not allow it to fail.

“Restoring and securing energy security for the country is an absolute imperative. In the coming days, we will be announcing a package of measures to stabilise and improve Eskom's financial, operational and structural position and to ensure security of energy supply for the country. Restoring energy security is an absolute imperative for the country," he said.

Ramaphosa is expected to announce this package of measures, or give a strong indication of what it would entail, during the State of the Nation Address today.

It was reported that government might push for the partial privatisation of some operations within Eskom.

The National Energy Regulator of South Africa (Nersa) has concluded its countrywide public hearings into Eskom's tariff increase application for the next three years, in a bid to recoup more than R20 billion.

Eskom had initially applied for an increase of 15% a year for the next three years, but it has since revise its tariffs application upwards to between 45% and 48%, due to its financial position. - Nampa/ANA

Similar News

 

Electricity price drops 2.5%

2 weeks ago - 03 May 2019 | Energy

The Electricity Control Board (ECB) yesterday announced a 2.5% decrease in the bulk tariff for electricity - the first price drop in 36 years. ...

NamPower granted permission to decrease tariffs

2 weeks ago - 02 May 2019 | Energy

The Electricity Control Board (ECB) today granted NamPower a 2.5% decrease in the bulk tariff for electricity, for the first time in 36 years. The...

Petrol up by 70c

2 weeks ago - 30 April 2019 | Energy

Namibian motorists will see a 70c increase in petrol and a 20c increase in 50ppm diesel as of midnight tonight. The mines ministry announced the...

Namcor to fly solo on fuel storage facility

1 month - 12 April 2019 | Energy

The National Petroleum Corporation of Namibia (Namcor) says it will have to manage the strategic fuel-storage facility on its own for now, as the tendering...

New Harambee electricity targets

2 months ago - 18 March 2019 | Energy

Deputy energy minister Kornelia Shilunga says government will soon commit itself to the 100% electrification of schools, hospitals and other public institutions, as well as...

Eskom too big to fail

3 months ago - 07 February 2019 | Energy

Eskom was too big and too important for South Africa to be allowed to fail, President Cyril Ramaphosa said on Tuesday.The troubled South African state-owned...

Opoloyela yolusheno lwoonkondo dhetango mOkatope ya tameke

3 months ago - 04 February 2019 | Energy

Omahangano gatatu ngoka ga pewa ootendela kehangano lyoku andjakaneka olusheno moNamibia lyaNamPower, opo ga tulepo oosasiyona ndatu dhoolusheno lyoonkondo dhetango mOkatope moshitopolwa shaShikoto oga tameke...

Okatope solar plants get off the ground

3 months ago - 01 February 2019 | Energy

Three companies awarded tenders by NamPower to set up three solar power plants at Okatope in the Oshikoto Region have started construction.NamPower signed power purchase...

Resized Kudu affordable - Namcor

3 months ago - 31 January 2019 | Energy

The National Petroleum Corporation of Namibia (Namcor) is confident that the revised Kudu gas-to-power project, which will now only supply energy to the local market,...

Seismic oil exploration starts offshore

3 months ago - 23 January 2019 | Energy

Augetto Graig Portuguese-based energy company Galp will start with a 3D seismic research campaign in Namibia’s Deep-water Offshore Licence PEL83 in the Orange Basin on...

Latest News

Deadbeat dads

7 hours ago | Social Issues

Although Namibian law holds both parents equally responsible for meeting the basic needs of their children, nearly half of households are run by single mothers,...

Live for the moments, not...

7 hours ago | People

Mariselle StofbergCarla van Zyl is the top medical student from the class of 2018 at the University of Namibia (Unam). This motivated, driven and passionate...

Taking collective responsibility

7 hours ago | Columns

It is indeed encouraging to see Namibians in general expressing their support and speaking out in defence of sexual assault survivors. Stigma can compound the...

You can’t Photoshop feelings ...

7 hours ago | Columns

Justicia Shipena I came across a man at a workshop I attended and he said to me: "Write what you are feeling. Tell the...

Nakuumba still open to Angolan...

7 hours ago | International

Local businessman Titus Nakuumba says he is still open to negotiating with government for the purchase of his land situated in Luanda's Polo Industrial Area....

Trucker recalls terrible crash

7 hours ago | Accidents

Six people, including a five-year-old girl, died in an accident on the B1 road between Otjiwarongo and Okahandja on Sunday afternoon. According to the...

A competitive culture

7 hours ago | Sports

Ester KamatiFNB Classic Clashes was established in 2008 by First National Bank (FNB) of Namibia as an initiative to give scholars a platform to socialise...

Lingua marketing day a huge...

7 hours ago | Education

Evany van WykOn 16 May, the annual International Training College Lingua marketing day was held at the main campus in Windhoek. This day is held...

Kunene's Sida Di/Goan initiative lauded

7 hours ago | Education

President Hage Geingob expressed delight with the Sida Di/Goan initiative, which specialises in repairing the broken chairs, tables and beds of schools in the Kunene...

Load More