Answer to Question #109110 in Microeconomics for lindi

Question #109110
1.2 With regard to coal shortages and municipal debts, what forms of interventions do you think Eskom can put in place in order to cover up for all the debts and continue operating? Incorporate relevant graphs in your answer.
Expert's answer

To solve these problems Eskom is in contact with the National Energy Regulator of South Africa regarding the next steps, In the meantime, Eskom's action plan rests on three main prongs:

1) Bringing in extra coal as a relief measure. Some is being transported by truck, and there is also an agreement in place with Trans net to bring in extra coal reserves by rail.

2) Signing new contracts.

3) Relying on diesel as an interim measure to supply power.

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