Eskom rescue plan to be launched only next year

Eskom expects to launch its turnaround strategy in 2019 after at least two delays of its much-anticipated recovery plan, as power cuts blanket the nation.

The power company’s long-term strategy has been approved by the board, it said in an e-mailed response to questions on Saturday. The plan is seen being implemented “in the new year”, it added.

Eskom announced a third day of scheduled power outages on Saturday due to inadequate energy availability. Financial constraints limited maintenance amid unplanned outages from an ageing fleet of power stations. The controlled blackouts threaten South Africa’s economy as President Cyril Ramaphosa attempts to draw investment to help boost growth.

A new board and leadership at Eskom was intended to turn the business around. While the utility took steps to root out corruption and encourage whistle-blowers to come forward, further delays in the announcement of its turnaround strategy is raising concerns.  — Reported by Paul Burkhardt and Amogelang Mbatha, (c) 2018 Bloomberg LP