Eskom's coal crisis

Eskom is being reported to be running low on coal, municipal debt has ballooned by another R2bn since May 2018 to R17bn in September 2018 and the risks associated with load shedding are "very high".

Currently, Eskom has a total coal stockpile of 25 days. However, some stations are affected worse than others.

The 10 worst affected stations are Arnot, Camden, Duvha, Hendrina, Komati, Kriel, Kendal, Majuba, Matla and Tutuka, all in Mpumalanga Province. These stations all have less than 20 days of coal, with five of them having less than 10 days of coal, Eskom spokesperson Khulu Phasiwe told Fin24.

The situation has measurably deteriorated since previous check points earlier in the year, he added, when stock piles stood at 28 days' worth of coal. "Clearly there has been a reduction. It is a matter of major concern," he said.

Source: www.new24.co.zaaccessed 10 November 2019

1.1Name and define in detail the type of market structure Eskom is operating as?[5]

1.2With 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.[25]

How will Eskom's interventions of covering up for all the debts and coal shortages impact on consumers?