Eskom's Debt Dilemma: Power Struggles Amid Proposed Tariff Hikes

Eskom, South Africa's power utility, faces a financial crisis with unpaid debts risking its government bailout. The firm seeks approval for significant tariff hikes, prompting backlash from communities and political groups. The debt relief from the government could be negated if municipal debts continue to soar.

Amid mounting debts and financial uncertainty, South Africa's Eskom is calling for substantial tariff increases. The power utility, owed 90 billion rand by municipalities, warns these unpaid dues threaten to nullify its government bailout funds.

Eskom's plea for electricity price hikes has stirred backlash from political parties and civic organizations, fearing adverse effects on the economy and struggling communities. Calib Cassim, Eskom's chief financial officer, stresses that while tariff adjustments are crucial, they alone are not a remedy.

The company's recent power supply improvements have not quelled public discontent. With limited support from the energy regulator and active protests from parties like the Democratic Alliance, Eskom faces fierce opposition. The proposed hikes are seen as unsustainable by many, including Cape Town's mayor, who led a protest against the increases.

(With inputs from agencies.)