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Eskom gets R59bn bailout

Date: Oct 24, 2019

Eskom granted R59bn bailout

The DA says Eskom's continued requests for more bailouts is tantamount to a hostage situation, and taxpayers are the victims.

The embattled power utility will now get R59-billion over the next two years.

That's in addition to the R17-billion the power utility received in April.
 

"One wonders if load-shedding was not our hostage-takers, ensuring that they got their money on time," said DA MP Ashor Sarupen.

"I call it ransom because it's unconditional. The Bill allows the minister to transfer the money to Eskom without any preconditions being met. "

The EFF said the crisis at Eskom is from the ground up.

The party's Floyd Shivambu said the embattled utility is paying almost double the recommended coal price.
 

Shivambu also criticised the decision to appoint Jabu Mabuza as acting CEO while being board chairperson.

"The bigger crisis is the stabilisation of coal prices. The National Energy Regulator of South Africa (Nersa) that the coal prices must cost about R350 a tonne," said Shivambu.

"Currently Glencore is supplying coal to Eskom at more than R600 a tonne and that is the case with the established coal suppliers.

"You will never get stability at Eskom unless you stabilise the supply of coal prices."
 

South African households owe Eskom billions of rand.

Soweto makes up the biggest chunk owing around R18-billion.

Eskom announced on Tuesday that it is heading to court to force audit firm Deloitte to pay back the money.

It hopes to recover over R200-million paid for alleged improper contracts.

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