Answer to Question #90028 in Microeconomics for Lilly Manabalala

Question

With regard to coal shortages and municipal debts. What forms of intervention do you think Eskom can put in place in order to cover up all the debts and continue operating? incorporate relevant graph's in your answer

Answer 1

To solve these problems Eskom is in contact with the National Energy Regulator of South Africa (Nersa) regarding the next steps. In the meantime, Eskom's action plan rests on three main prongs:

1) Bringing in extra coal as a relief measure. Some is being transported by truck, and there is also an agreement in place with Transnet to bring in extra coal reserves by rail.

2) Signing new contracts.

3) Relying on diesel as an interim measure to supply power.

Source:

https://m.fin24.com/Economy/Eskom/load-shedding-eskoms-coal-crisis-in-a-nutshell-20181114