Ricochet News

Minister poses warning to power supplier

Minister poses warning to power supplier

Finance Minister, Nhlanhla, Nene has told electricity supplier Eskom to sort out its crippling financial situation as it is having a negative effect on the country’s economy. This comes after the state owned parastatal announced that it had virtually exhausted its remaining diesel supply and would be fully out by the middle of next month.

Speaking an interview with the Business Report, Nene said that government would try its best to help but that constant bail-outs were unfair and inappropriate.

“We cannot deal with operational issues at Eskom… issues relating to day-to-day level. They are best suited to address that,” he said.

“It’s not about the bailout. It doesn’t help to always bail out. The issue here is to ensure that there is [a] medium- to long-term plan to ensure that Eskom is in a good situation. If Eskom says it’s only left with the money to sustain it for 21 days, what does that mean? Does it mean it has not been generating profit through electricity sales? Eskom is in business, making and losing money,” Nene added.

On Friday, widespread rolling blackouts were once again implemented due to an increase in consumption as businesses resumed operations after the festive season shutdown. At the same time Eskom spokesperson, Khulu Phasiwe, revealed that around R20-billion would be needed to help the struggling power supplier. 


IMAGE sourced from www.vocfm.co.za