Actions needed to put Eskom on the road to recovery
Eskom is not too big to fail – it already has. The issue now is how we deal with it.
Eskom’s proposed plan to ‘buy’ the time it needs to do proper maintenance on its ageing fleet – by providing significantly less power through ever-present load shedding, hopefully at a low stage – could, if implemented, give the utility a chance to fix itself.
Read: Finally, a credible plan to fix Eskom
However, it will take more than time to fix South Africa’s power supply situation.
There is an urgent need for constructive, pragmatic efforts, free of ideological constraints and dogma, to end generation capacity shortages in South Africa.
The government can deliver quick wins by providing sound policy positions and messaging, with an emphasis on reducing unnecessary policy and regulatory constraints. This should be supported by consistent political, economic and pricing signals to enable electricity customers and the market to respond to capacity constraints, and to be part of the solution, alongside the government’s efforts.
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