This festive season will be a lot darker for South Africans as load shedding will interrupt celebrations the rest of the year. The Guptas have some blame here as their mines under-supplied Eskom, leading to the current shortage of coal.
For 2 years, the Guptas' mines under-supplied Eskom by almost 4 million tons of coal. They rather chose to export the coal and made profit of about R3 billion.
However, Tegeta Resources and Energy never suffered any real consequences and now Eskom has a shortage that's affecting its output.
Eskom, in the two years, e hardly took any action to enforce the contracts it had with Tegeta to make sure the promised amounts of coal were delivered.
News24 reports that Eskom imposed a penalty of R26 billion on Tegeta, but that didn't change much. Eskom still has a coal deficit and South Africans will pay for it.
Eskom insists that the current load shedding was caused by breakdowns, maintenance of power stations and strike actions.
However, the power utility did add that the shortage of coal could result in more load shedding in the remainder of the year.
Eskom now has to get coal on an emergency basis to make up for the shortage, and it will cost more than Eskom can afford.
Already, Eskom has built up debt of about R400 billion and profits have taken a dive from R8.9 billion to about R1 billion.
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