Answer to Question #89677 in Economics of Enterprise for lukhanyo

Question

What will happen if Eskom monopoly is broken

Answer 1

An end to Eskom’s monopoly would lead to the introduction of new entrants in the power generation industry and prevent taxpayers from having to pick up the tab for future bailouts, which arise mostly from mismanagement, corruption, and the absence of competition to the state power utility’s unchallenged market dominance.