According to Eskom implemented a viable plan for the provision of electricity for more than 1.75 million South African households were unable to pay for the service, which resulted in a debt of around $ 400 million in 1997 many of its customers. This negative consumer behavior was not necessarily wrong, because South Africa’s black citizens had historically consumer boycotts as a means of protest against the apartheid state, so that the country’s customer base was in an environment where non-payment was developed … Read more »

According to Eskom implemented a viable plan for the provision of electricity for more than 1.75 million South African households were unable to pay for the service, which resulted in a debt of around $ 400 million in 1997 many of its customers. This negative consumer behavior was not necessarily wrong, because South Africa’s black citizens had historically consumer boycotts as a means of protest against the apartheid state, as the country had the customer base in an environment where non-payment was often seen as a social norm rather than developing negative behavior. Recognizing that consumer behavior was the result of living under a repressive regime, had to Eskom to address this seemingly intractable situation.
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from
Patricia H Werhane,
Michael E. Gorman,
Brian Cunningham
Source: Darden School of Business
2 pages.
Release date: 07 April, 1999. Prod #: UV1875-PDF-ENG
Eskom and the South African Electrification Program B HBR case solution