Power theft: Eskom’s wallet in South Africa drains by $ 55M a month.

Lack of planning, equipment upgrades, routine maintenance, ageing infrastructure, and other factors have left South Africa in a precarious position in the energy industry. It is experiencing the worst power outages in 15 years. To make matters worse, unregulated power theft steals an average of one billion Rands ($55 million) from South Africa’s energy provider Eskom, which is struggling to deliver electricity, according to a report placed on to parliament on Tuesday. The endemic graft at the utility has impacted the power sector in total and the ill effects are reflected in the common man already.

It is reported that senior officials make an abrupt exit from the Escom, for reasons known to them only. As usual, there is mudslinging about corruption and inactivity among political parties. It is alleged that high-ranking government officials were linked to the corruption and power theft that have forced the power utility to march towards bankruptcy.

The electricity blackouts lasting several hours a day are expected to reach a critical stage as winter arrives in the Southern Hemisphere and sends energy demand soaring. The outages continue to hold back economic activity, with economists warning that growth could contract significantly, possibly plunging the country into recession.

The consumers are deprived of electricity for several hours a day and are expected to touch a critical stage as winter arrives in the Southern Hemisphere. The total progress of a country is hampered when electricity is scarce. Power theft is a major reason. The industrial growth of China is due to the advancement in the power sector with uninterrupted electricity at a reasonable price. So is the case in many other developed countries. The outages continue to hold back economic activity, with economists warning that growth could contract significantly, possibly plunging the country into recession. Globally, Distribution companies are stepping out of the danger zone of poor economic growth after COVID-19. It is the policy that affects the power sector to a great level and is linked to all economic activity.