Answer to Question #104698 in Microeconomics for Danisile

Question

With the coal shortage and municipal debts, what forms of interventions do you think eskom can put in order to cover up for all the debts and continue operating? Incorporate relevant graph in your answer

Answer 1

The government of south Africa can offer a debt relife for eskom.Though it is a costly option ,this will increase the sovereighn debt level and lead to downgrade by rating.

Another policy that can be used is the new proposal in which finance will be available to eskom on condition that the old coals plants will be decommissioned in favour of the new ones.