Eskom stuck in a ‘death spiral’ with no end in sight
It's about to surpass its record R20.7bn loss, while there's no sign of the promised restructuring process
Eskom revealed a set of dire financial results on Tuesday, a sure sign that the power company is caught in a death spiral with no plan in sight to get out of it.
Announcing a record R20.7bn loss for the year ended March 2019, Eskom executives warned that the blood-letting was not over yet and a similar size loss was projected for 2020 as debt costs grow and revenue shrinks.
The company – which has amassed R440bn in debt to fund a massive and badly managed capital build programme – has been unable to service its debt from revenue for the past two years and is now reliant on government bailouts...