South African

Case Solution for Eskom and The South African Electrification Program (E)

Complete Case details are given below :

Case Name :      Eskom and The South African Electrification Program (E)
Authors :           Patricia H Werhane, Michael E. Gorman, Brian Cunningham
Source :             Darden School of Business
Case ID :           UV1878
Discipline :        Finance
Case Length :    04 pages
Solution Sample availability : YES
Plagiarism : NO (100% Original work)
Description for case is given below :
Eskom produces the world’s cheapest electricity by using coal-fired plants, most of which have not been retrofitted to meet World Bank standards. Moreover, most South Africans without electricity burn wood, which creates even more air pollution than coal. Should Eskom retrofit its coal-fired facilities and raise the price of electricity or continue to expand its inexpensive electrification program?
 
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Case Solution for Eskom and The South African Electrification Program (D)

Complete Case details are given below :

Case Name :      Eskom and The South African Electrification Program (D)
Authors :           Patricia H Werhane, Michael E. Gorman, Brian Cunningham
Source :             Darden School of Business
Case ID :           UV1877
Discipline :        Finance
Case Length :    02 pages
Solution Sample availability : YES
Plagiarism : NO (100% Original work)
Description for case is given below :
This case concerns Eskom’s commitment to provide employment in rural areas by training residents to work on local electrification projects. But the company discovers that its employees, for a small fee, often help customers make illegal connections to power lines, thus avoiding payment for service. In some communities, as much as 80% of the electricity is illegally obtained. How should Eskom deal with this problem?
 
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Case Solution for Eskom and The South African Electrification Program (B)

Complete Case details are given below :

Case Name :      Eskom and The South African Electrification Program (B)
Authors :           Patricia H Werhane, Michael E. Gorman, Brian Cunningham
Source :             Darden School of Business
Case ID :           UV1875
Discipline :        Finance
Case Length :    02 pages
Solution Sample availability : YES
Plagiarism : NO (100% Original work)
Description for case is given below :
After Eskom implemented a viable plan for providing electricity to more than 1.75 million South African households, many of its customers failed to pay for service, which resulted in a debt of approximately $400 million by 1997. This negative consumer behavior was not necessarily unjustified, as South Africa’s black citizens had historically used consumer boycotts as a means of protest against the apartheid state, so the country’s consumer base had evolved in an environment where nonpayment was often seen as a social norm rather than negative behavior. Recognizing that consumers’ behavior was the result of living under an oppressive regime, Eskom needed to address this seemingly intractable situation.
 
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