Eskom’s business model is ‘no longer fit for purpose’

Organised business made an impassioned plea this week for government to urgently review Eskom’s business model, which it said was “no longer fit for purpose”. In a presentation to the National Energy Regulator of South Africa, business also warned that, in the absence of a holistic view within government of the problems afflicting Eskom, the “utility death spiral” currently under way would pose a serious existential risk to the power company and could, in turn, threaten the sustainability of government finances.