SCENARIOS-What happens now at S.Africa's Eskom?

JOHANNESBURG, Nov 12 (Reuters) - South African power utility Eskom lost its chairman and chief executive this week following a two-week long power struggle at the troubled company, raising doubts about the government's leadership of state-owned firms. [ID:nLC437869]

Here are some possible consequences of the change in leadership at the state-owned power group.

FUNDRAISING WOES

Economists said the dispute could have serious repercussions for the utility and other state-owned enterprises as investors might be less willing to send money their way if they sense political interference in their management or might ask to lend at much higher rates. [ID:nLA586147]

Eskom is already struggling to raise all the funds it needs to pay for its 385 billion rand ($51.96 billion) power expansion programme to feed fast-rising demand in Africa's biggest economy, especially as credit markets tightened on the back of the recession.

Both Moody's and Standard & Poor's said the change might not affect their rating on Eskom in the near term, but they still saw it as an "unnecessary distraction" and said it could further reduce investors' confidence in Eskom's ability to tackle its power supply problems and raise funds externally.

UNCERTAINTY OVER SUPPLY