propose recomendation to the ceo of eskom whether they should consider into restructuring into more co
mpetative market
Answers
Answer:
Following are the recommendations for the CEO, the options are listed alongside their individual explanations:-
Explanation:
OPTION 1: No restructuring/status quo
This means that the CEO should retain the vertically integrated monopoly.
This was presented by Frans Baleni (deputy chairman of the Development Bank of Southern Africa)
Considering that Eskom is a vertically integrated, state-own entity. It has served South Africa sufficiently and provided electricity at competitive rates as well as aided the country’s economic development. So this step should just plain and simply be eradicated.
OPTION 2: There should be Shallow restructuring
This refers to status quo existing but with increased public participation in the matter.
The country should identify the key priorities and look that what needs to be done for socio-economic benefits. Thus look for an electricity sector which can ensure long-term socio-economic success.
This could lead to solved issues of inequality and affordable electricity.
And whilst keeping these goals in mind the public may also be involved in the process of ESKOM. The employees could use help from re-skilling programs.
Answer:
Some recommendations for the CEO of Eskom are as follows.
(1) The debt problem of the company can be tackled by splitting it up equally into two or three different parts so that the management can be made more lean and workable.
(2) Procuring cheaper means for producing electricity is very much needed and the company should look into it.
(3) It should also promote customers to go for non-renewable energy sources like solar and help in setting them up in rooftops of each home so that surplus power can be taken from them.