SA power crisis | Power outages hit businesses hard | Aici

JOHANNESBURG – Unrelenting power outages and a looming 18.65 percent increase in electricity prices point to ‘inevitable’ financial difficulties for the company.

This is according to the Director of the Werksmans Insolvency and Business Practice Group, Eric Levenstein.

READ: SA power crisis | The company is knocking

He said that there are many companies operating due to power outages.

“You look at last year, many companies that were on the verge of insolvency could not hang around for a long time and filed for insolvency or liquidation.

READ: The SA Energy Crisis Committee hopes to reduce power outages

“And I think that on the back of Eskom’s recent price hike, we may see more success in the first quarter of this year,” Levenstein said.

“It is not very good in terms of the company being able to sustain the current loss of income, with Eskom’s price increase of 18.65 percent.

“It is not easy for companies to continue trading where they are in financial trouble,” he said.

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