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

 

Havana, Otjomuise powered by June

3 days ago - 25 February 2020 | Energy

The ministry of urban and rural development has committed a total of N$14 million for electrification for the 2019/20 financial year, an amount that is...

Southern electricity distributor in the works

3 weeks ago - 07 February 2020 | Energy

The Electricity Control Board (ECB) of Namibia is confident that plans to set up a southern regional electricity distributor (RED) before August will materialise.The establishment...

Namcor wants to dominate fuel market

3 months ago - 22 November 2019 | Energy

The National Petroleum Corporation of Namibia (Namcor) is intent on dominating the retail fuel market following the official opening of its first fuel station at...

Quick response to blackout

3 months ago - 21 November 2019 | Energy

ELVIRA HATTINGH NamPower yesterday said it had contingency measures in place to prevent a reoccurrence of Tuesday night’s power failure in most...

Namcor selects fuel storage partners

3 months ago - 19 November 2019 | Energy

Only one Namibian fuel company has been selected to store its fuel at the National Petroleum Corporation of Namibia's (Namcor) fuel storage facility once it...

Namcor fuel 'monopoly' thwarted

3 months ago - 15 November 2019 | Energy

The National Petroleum Corporation of Namibia's plan to import up to 50% of Namibia's fuel has been rejected by the Namibia Competition Commission (NaCC), Namibian...

Renewables in spotlight at PPP conference

3 months ago - 11 November 2019 | Energy

Renewable energy projects came under the spotlight at a Public Private Partnership conference held last week to discuss investment into potential projects in that sector.The...

NamPower donates solar lights to Zambezi learners

4 months ago - 28 October 2019 | Energy

STAFF REPORTER The NamPower Foundation has handed over 150 solar lights to the Legal Assistance Centre (LAC) in Windhoek, which in...

Namibia aims to increase renewable energy

5 months ago - 13 September 2019 | Energy

Namibia aims to increase its share of renewable energy to 70% in about 10 years. Environment minister Pohamba Shifeta says in 2010 this share stood...

Power cut at education offices

6 months ago - 22 August 2019 | Energy

The Ohangwena education directorate's offices at Eenhana have been left without electricity, after Nored cut the power due to non-payment on Tuesday.According to sources, the...

Latest News

Shimbulu reinstatement declared illegal

21 hours ago | Politics

Oshakati town council legal consultant Jan Greyling has penned a damning opinion on the nomination and swearing-in of Katrina Shimbulu as a councillor, and her...

Has ACC finally awoken from...

21 hours ago | Opinion

The Anti-Corruption Commission (ACC) has for years stomached bashing for its perceived 'small fish' approach to corruption.In fact, there is nothing suggesting that corruption has...

Samherji throws lifeline to Geysir...

21 hours ago | Labour

Workers currently on Samherji's Geysir vessel, which is fishing in Mauritania, will keep their jobs, while the rest of the crew who were left in...

MTC to build 270 houses

21 hours ago | Infrastructure

MTC is planning to construct 270 houses and will partner with the Shack Dwellers Federation of Namibia (SDFN) for the delivery of the homes in...

Neckartal level at 5.2%

21 hours ago | Weather

The multibillion-dollar Neckartal Dam has received inflow of about 45 million cubic metres of water since the beginning of this month. To put this in...

The passion of Cassidy Karon

21 hours ago | Art and Entertainment

We all can pretty much nod at the fact that Cassidy Karon is currently at the frontline of youth, fashion and street culture in Namibia....

The flip-flop drag

21 hours ago | Art and Entertainment

After years of tossing and turning in their grave, the fashion gods and ancestors have finally defeated the powers of death and risen once again....

Online, online, online!

21 hours ago | Art and Entertainment

Since taking over tjil last year, I have been met with praise, yet also criticism. I have been met with pride, yet also concern. It's...

Song Night is back

21 hours ago | Art and Entertainment

Consistently exceeding expectations of nurturing the Namibian sound, Song Night, now sponsored by RMB, pledges to focus even more on mentoring musicmakers and bringing explosive...

Load More