The long financial crisis has taken a heavy toll on the markets and the institutions. It has put monetary union itself to a severe test. The banks are suffering the heavy consequences of the double-dip recession and the sovereign debt crisis. They have met with serious funding difficulties, coped with the need for capital strengthening, and suffered a sharp drop in profitability.
However, the recent application by Eskom for a significant tariff review has increased the upside risk to the forecast. While we would not be surprised if some of the Eskom request is acceded to, the quantum and timing is uncertain.