UTILITIES
result of a catastrophic grid failure , but actually managed by Eskom Holdings , a state-owned utility .
The grid can ’ t handle peak electricity usage , and Eskom has repeatedly asked consumers , both residential and commercial , to cut down on usage during this time . For industrial consumers , this could mean reduced production and decreased profits .
When consumers don ’ t comply , Eskom runs managed blackouts to keep the grid stable . As Bloomberg ’ s Paul Burkhart points out , Eskom just can ’ t keep up .
“ The state-owned utility can ’ t provide reliable electricity to run Africa ’ s second-largest economy ,” he writes . “ It has a long-term plan to expand generating capacity by more than 40 percent , while facing a 225 billion-rand ($ 20 billion ) funding shortfall through 2018 . The company has faced supply shortages for years and has said it may be another five years before it can guarantee the lights will always be on .”
Eskom argues that these blackouts are necessary to keep the grid
Blackouts are a major problem in South Africa , even though they ’ re not always un