Compared to the latest wind selling price (69c), we must eliminate 36c of cost from the capital recovery to make Medupi competitive with wind. This requires a 68% write-off of the asset value making a R131bn deficit in the Eskom balance sheet.
As Jabu Mabuza said: Someone must pay.
5. The one basic truth
There is one basic truth: business is risky. And Eskom is a business. In business, risks are borne by shareholders. For Eskom that means us.
Eskom took on substantial risk when it approved construction of the two coal-fired power stations Medupi and Kusile. Other capital projects around the world have exceeded their budgeted costs. For example, the International Space Station, various infrastructu…
Read the full article at: https://www.businesslive.co.za/bd/opinion/2019-02-08-eskom-restructuring-is-just-the-illusion-of-action/