BUDGET 2021: Eskom and the missing power supply: big plans but little urgency
Eskom does not generate enough cash to meet its commitments, “it faces serious operational challenges and cannot meet the country’s electricity demand,” according to the Budget Review. (Photo by Gallo Images / Misha Jordaan)
Eskom is a strong focus of Budget 2021, which emphasizes the importance of getting the parastatal out of the debt routine and the need for additional power generation capacity.
Unlike the Land Bank, which obtained the 7 billion rand it requested, Eskom did not get any new bailouts, or in government terms, an injection of capital. But then the troubled energy company, in the 2019 Budget, received R23 billion annually adjusted for inflation every year for the next 10 years, and a special allocation of R56 billion for two years.
Additional long-term financing …