Eskom and The South African Electrification Program C Harvard Case Solution & Analysis

The desire to spend about $ 400 million a year to provide 1.75 million South African households with electricity in 2000, Eskom was to lose another $ 300 million due to non-payment for services consumers. The company also faced higher operating costs as a result of illicit tampering of electrical connections. These expenses increased to such an extent that the annual cost was higher than the annual sales in many areas Eskom served. This illegal behavior has evolved under a repressive regime, which has led many consumers to steal from the existing infrastructure for access to basic services. "Hide
by Patricia H Werhane,, Michael E. Gorman, Brian Cunningham Source: Darden School of Business 2 pages. Publication Date: April 7, 1999. Prod. #: UV1876-PDF-ENG

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Eskom and The South African Electrification Program C

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