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Dig deep, Mzansi. Eskom wants your tax money again. Rumors of a fresh bailout have been sparked after a Treasury official said it’s a case of “when, not if”.

Power giants Eskom have suffered a double-blow this weekend after it emerged that they would need bailouts on top of bailouts to really get itself up and running again. However, their woes have intensified even further, after a local environmental group sued the government over their levels of pollution.

Let’s unpack this one bit at a time. As Bloomberg report, National Treasury Director General Dondo Mogajane said that the government is likely to commit billions more to the flailing utility, stating that they “don’t have a choice” in the matter.

Another bailout imminent for Eskom
Mogajane’s admission comes just months after Eskom secured R69 million from the government for the next three years. However, this came with a caveat – Presiden
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Embattled South African state power utility Eskom’s debt burden, described by Goldman Sachs Group as the biggest threat to the nation’s economy, has burgeoned, compounding the difficulty the government faces in formulating a turnaround plan.

The company’s debt is approaching R500-billion, according to data compiled by Bloomberg from public records, including bonds and issued loans, up from about R370-billion a year ago. While the utility declined to comment on the current number, its CEO, Phakamani Hadebe, last month put total debt at about R450-billion.

Eskom hasn’t been selling enough power to cover its operating costs and interest payments, and has been forced to implement rotating blackouts over the past few years to prevent a collapse of the national grid as its fleet of ageing and poorly maintained plants struggled to keep pace with demand.

President Cyril Ramaphosa announced plans earlier this year to split the company into three
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