What happen if eskom's monopoly is broken
Answers
Answer: Allowing participation of new players in the power generation industry.
Explanation:
If Eskom’s monopoly is broken it would allow new entrants in the power generation industry. This would bring relief to the taxpayers who have been shouldering the burden of bailouts and thus help in avoiding future stress.
The reason of behind such bailout is because of the corruption mismanagement and the absence of competitor. Since they are the sole provider of power, their stance often remains unchallenged.
Eskom’s monopoly can only come to an end by separating it`s transmission and distribution assets from the power-generation business. This would allow a new player to take over the asset and provide service to all independent power producers (IPPs) and Eskom.
This would restrict their limited presence in power generation and also provide independent power producers to compete on equal footing with the state power utility.
Hope this helps.
Explanation:
If eskom's monopoly is broken then it allow the participation of new players in the power generation industry. it will provide a relief to the taxpayers who have the burden of bailouts and they can remove their stress by this policy. The main reason is that there is no corruption and mismanagement behind the bailout and the sole power will be concentrated on the single taxpayer.