what will happen if Eskoms monopoly is broke?
Answers
Answer:
Explanation:
Eskom had monopoly on South Africa's power supplying industry which it reinforced with the help of the hefty political leaders dominating its market share. As it had became a political entity it broke the natural laws of economics. Corruption was also a major reason for its doom.
If the monopoly is broken there will be inefficient power supply in the cities as the monopoly has made the economy to trust just on a single organisation and they do not have immediate substitutes. But in long term the prices would decrease and poor doesn't have to pay what they are paying today as new entrants will reach the market and competition will allow to set a reasonable level.
If Eskoms monopoly is broke
Explanation:
- An end to Eskom’s monopoly would lead to the overview of new applicants in the power generation industry and avert taxpayers from consuming to pick up the tab for upcoming bailouts, which arise mostly from mishandling, dishonesty, and the nonappearance of rivalry to the state power utility’s unchallenged market dominance.
- The bill enables the creation of an independent structure (ISMO) – as a state-owned company responsible for system operation and the purchase of electricity from electricity generators.
- This means Eskom would only function as a generator and not be responsible for transmission or distribution.
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