This is despite recent procurement initiatives the power utility has introduced.

In a note published on Monday, the ratings agency said that the power shortfall should be addressed in the medium-term by Eskom’s plan to improve the performance of its power plants, in turn reducing the usage of high-cost open-cycle gas turbines and improving profit margin.

Fitch further added that Eskom’s generation capacity plan is ‘finely balanced’.

Moneyweb