- Eskom has decided to decommission several units at aging power stations, losing capacity at a critical time
- The utility wants to cut its losses and give up on stations that need expensive repair work
- With the entity's newest power stations running below their intended capacity, the system will battle to keep up with demand
Eskom is planning to permanently shut down several units at a few of its older power stations.
BusinessLIVE reports that the utility either can't afford to fix the units, or simply cannot, but the decision comes at a time where the system is struggling to keep up with the demand for electricity.
Defects at Medupi and Kusile, the new troublesome additions to Eskom's fleet, have seen the costly behemoth stations running at around 70% capacity.
The state-owned entity is currently in legal disputes with the suppliers over who is to blame for the design failures, with billions on the line.
Eskom has surprisingly noted a R1.3 billion profit for the first six months of this financial year. However, the cash-strapped utility is expected to lose R20 billion for the entire period.
CFO Calib Cassim says the financial woes are linked to operational issues, with mounting debts adding to the difficulties.
Briefly.co.za reported that municipalities are feeling the pressure as the power utility seeks to cut off regions over non-payment.
Soweto, currently the area with the highest outstanding amount, has already seen homes cut off from the power grid over arrears to the tune of around R16 billion.
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