Eskom will be broke in 21 days

By Drum Digital
09 January 2015

The country's electricity supplier will be out of money in 21 days and it seems that a bail out may not be an option.

Minister of Public Enteprises Lynne Brown has been quoted as saying that "Eskom will run out of money by the end of January".

Mail and Guardian reports that the company needs some sort of bailout from the government or there will be blackouts and load shedding.

Finance Minster Nhlanhla Nene has a herculean task ahead of him as he has pointed out before that there is no cent to spare in the budget.

Eskom has been overworking its stations and has been forced to make use of its emergency reserve earlier this week when two of its generators failed.

It seems that running the country's electricity supply on diesel may be one of the biggest problems.

Doug Kuni, chairperson of the South African Independent Power Producers Association has been quoted by Mail and Guardian as saying that "the insanity of running the country on diesel is with all of us. And now they are looking for money to buy more diesel. Even if Eskom found the money to buy the diesel, it wouldn't save the country."

He also added, "Eskom's problems are technical, but its manifesting as a financial issue because they need money to fix them."

As businesses open for the new year on Monday, it is expected for the power grid to be put under more pressure and thus causing Eskom to circulate more load shedding schedules in order to keep up with electricity demand.

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