Eskom Should Rely on Bond Market, Mboweni Says
- Utility imposing power cuts after underspending on maintenance
- Electricity availability only likely to improve in six months
Electrical power lines hang from transmission pylons in Pretoria.
Photographer: Waldo Swiegers/BloombergThis article is for subscribers only.
South Africa’s cash-strapped power utility Eskom Holdings SOC Ltd. should rely on bond markets to raise the funds it needs rather than expecting bailouts from the government, Finance Minister Tito Mboweni said.
Eskom’s debt has soared to 419 billion rand ($30.2 billion), while sales volumes have dropped as businesses and residential consumers go off the grid because of unreliable supply and rising costs. It began imposing rotating power cuts last week as inadequate spending on maintenance has reduced the ability of its power plants to generate electricity. It has also run low on coal, from which it produces most of its power.