SONA 2015: Eskom bailed out: economic perspective

In last nights SONA address, President Jacob Zuma announced that cash-strapped Eskom will be given R23-billion bailout by the government to stabilise the power utility’s finances. The government will also continue to utilise independent power producers in a bid to reduce the strain on Eskom. The utility has also been instructed to switch from diesel to gas as a source of energy for the utility’s generators.The bailout is due to occur in the next fiscal year. This is after the country has been subjected to months of blackouts, which impacted negatively on the economy.