South Africans are literally paying the price for Eskom’s debt. The power utility is hoping to recover about R10-billion from customers with its over 15-percent tariff hike.
But even with this, energy sector analyst, Roger Lilley says the government has to bail Eskom out. He says that part of Eskom’s cost structure, is the repayment of an enormous loan.
The utility owes bankers, both locally and internationally an amount of R460-billion and they have to pay something of that every month and they have admitted that the revenue that they get from selling electricity alone, is not enough to cover the cost and still meet their commitments on those loans.