Sustainability roadmap

Restoring good governance at Eskom is undoubtedly the most pressing priority for the State-owned utility and arguably among the top five current priorities for government itself. Absent an extraordinary recovery in the group’s credibility, the prevailing trust deficit between Eskom and society will not be breached. It will also undermine all efforts at convincing citizens that the latest request for a 19.9% tariff hike has any merit – no matter how sound the technical arguments, or how dire the consequences of ignoring them. Sadly, given the current standoff within the governing African National Congress decisive action to address the utility’s integrity problem is unlikely, leaving Eskom’s long-term sustainability in jeopardy. Already the alarm bells are ringing, with Goldman Sachs recently describing Eskom as the economy’s “biggest risk”, while Business Unity South Africa has suggested that the utility is approaching a sustainability tipping point.