Eskom and The South African Electrification Program (C) Case Solution
Spendingaround$400 million per annum to supply 1.75 million South African households with electricity by 2000, Eskom had to forfeit an additional $300 million because of consumers' nonpayment for service. The firm also faced increasing operational costs as an effect of consumers' tampering with their electric connections.
These prices had grown to such an extent that yearly prices were higher than yearly income in many of the places Eskom functioned. This prohibited conduct had evolved under an oppressive regime that forced many consumers to steal from the present infrastructure in order to obtain basic services.
This is just an excerpt. This case is about FINANCE & ACCOUNTING
PUBLICATION DATE: April 07, 1999