MOODY’S Investor Service yesterday cast a dim eye on South Africa’s electricity crisis and, though acknowledging current efforts in improving efficiency, was pessimistic of stability on the grid in the short term as funding, mismanagement and lack of technical skills were still prevalent.
In an report on South Africa's electricity market titled “Load shedding will continue as the system remains under severe pressure”, Moody’s said assuming that the planned growth in new capacity and Eskom’s efforts to improve operations materialise, the levels and intensity of load shedding should start to reduce next year.
Joanna Fic, the senior vice-president at Moody’s EMEA Infrastructure Finance team, said: “Still, there are risks to execution.”
Moody noted Eskom’s poor operational performance was reflected in the deteriorating energy availability factor (EAF), which in the financial…
