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Solving Eskom’s problems became increasingly difficult this week with Moody’s credit rating agency painting a bleak picture of the power utility’s financial results. However, something has to be done to remedy the situation. Corporate Collect has the answer to solving Eskom’s problems.
Moody’s on Eskom
On Tuesday, 7 August 2019, Moody’s released a review of Eskom’s financial results. At the moment, Moody’s is one of three ratings agencies that ranks South Africa’s investment grade. It was stated in the report that increased support for Eskom has become necessary due to its unsustainable capital structure. It is said that Eskom’s government bailouts will likely amount to R122 billion by 2021. Moody’s called this a “deteriorating performance” and said a turnaround plan is imminent.
The news made the South African Rand lose 20 cents against the dollar as investors reacted quickly.
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What is the problem?
There are many challenges facing South Africa’s power utility. One is non-payment of electricity. Furthermore, this is fuelled by illegal connections that harm the economy of the country. It is a known fact that illegal connections may lead to overloading of the system that could result in failure of mini-substations and transformers. In recent news, the situation was spiralling out of control in Gauteng as many areas were negatively affected by power outages. Government appealed to communities to halt illegal connections since it causes repeated equipment failures in various areas.
Whilst acknowledging consumers who pay their electricity bills, Eskom said it is not fair that others are not paying their monthly bills. Also, not having electricity will negatively impact safety of the public at large.
Solving Eskom’s problems
Corporate Collect is a one stop shop for debit order collection services. Any company such as Eskom, can benefit from the effortless debit order collection system. Not only is it convenient, it also saves you time and money by collecting debit order payments via the state-of-the-art fully automated system. All you (or Eskom) have to do is get paying clients or customers to sign that monthly debit orders will be collected by the Corporate Collect debit order collection system and the system will take care of the rest. Manage all your debit orders securely online 24/7.
Corporate Collect is the answer to cashflow problems. The system will collect scheduled debit orders and pay the money across to the intended person. The funds are available as soon as the batch has cleared. An added bonus is that the system has flexible debit collection dates. Let’s say a debit order has to go off on the 5th of the new month but it is a holiday, the system will automatically adjust the date of the debit order to the next working day. You an also make full use of recurring and once-off collections via the Corporate Collect debit order collection service.
Come on Eskom, give it a shot. Contact Corporate Collect today on 087 094 1677 or email sales@corporatecollect.co.za to find out more.