Why is Eskom with its monopoly status not viable and must constantly be
bailed out ?
Answers
Answer:Some South Africans have accepted this premise that it is current government who is responsible for the problems faced by Eskom.
Explanation: According to Woode-Smith, the thing which is wrong with Eskom is its structure as a monopoly provider of electricity. Eskom doesn't have the simple means to receive and interpret the market signals, to know what should be the rate of electricity.
Answer:
Eskom is one of the largest power utilities in the world ,and is able to handle huge tones of low grade coal.
Explanation:
Eskom has had constant price hikes and high debts pushing it to be a inviable
It has also been involved in corruption malpractice thus making it more inviable.
maintenance of eskom has also become so poor after the country's population grew ,thus its negative effects became evident.
Electricity theft has also been an issue leading to massive losses by the parastatal
eskom's monopoly need s to be broken in order to create an healthy competition in the energy sector,thus would be forced to shape up or get out of the market completely