Financially strained State-owned power utility Eskom has scrapped much criticised plans to send three executives to the World Economic Forum’s (WEF’s) 2015 meeting in Switzerland this week.

The utility said its executives would no longer attend the yearly Davos meeting from January 21 to 24 following public criticism for spending funds on the costly meeting after requesting bailout capital from government to keep South Africa’s national electricity grid from collapse.

CEO Tshediso Matona had cancelled his attendance on January 9 at “his own discretion”, while Eskom, after having “taken note” of the public concern, had scrapped plans for chairperson Zola Tsotsi and group executive for sustainability Dr Steve Lennon to attend.

Cash-strapped Eskom last week said it required a R3-billion immediate cash injection to sustain the diesel purchases it requires to operate its open-cycle gas turbines – over-and-above the R20-billion assistance package provided by the South African government in October.

The Democratic Alliance (DA) said the bailout had been funding the use of diesel-generated power, which costs R3/kWh to R3.50/kWh, compared with coal-generated power, which costs around 62c/kWh.

“Eskom simply cannot afford to waste resources at a time when its finances are at rock bottom and it cannot keep the lights on,” DA Shadow Minister of Public Enterprise Natasha Michael said amid reports of the parastatal going broke within a month.

Earlier media reports had noted that it would cost foreigners about 15% more to attend the WEF meeting this year, when compared with 2014.

The current membership fees for companies sending delegates had increased 20% on the prior year, with the “rapid appreciation” of the Swiss franc adding about $90 000 to the bill, a report by CNN showed.

Companies were also required to pay about $20 000 per executive to attend. This excluded accommodation and meals.

CNN calculations showed that the average cost of attendance, including flights and accommodation, would stretch to about $40 000 – or nearly R470 000 – a person.

Defending its plan to attend, despite the costs, even as Matona withdrew from participation to remain behind with the rest of the executive team to deal with Eskom’s “current situation”, Eskom said Tsotsi and Lennon would have secured knowledge that could prove to be “useful in informing alternative approaches to problem-solving.”

Further, the long-standing relationship with the WEF had been particularly relevant in recent years when Eskom faced major financial challenges, Eskom said in a statement, noting that Davos “provided an excellent platform for presenting a balanced view to future investors” in Eskom and South Africa.

“Engaging with global leaders, energy experts, investors, funders, original-equipment manufacturers and maintaining an international profile is part of ensuring our long-term sustainability,” Eskom added, explaining that the utility reviewed its participation at the WEF – and other relevant global events – yearly, with attendance decisions based on business priorities and the need to remain relevant and up to date in both the national and international context.

However, Michael said it was unjustified at a “time when Eskom is broke and holding out the begging bowl to South Africans to fund their mismanagement.”

“Management at Eskom remain unable to provide viable solutions to the load shedding that increasingly plagues South Africa. Matona’s time would be better spent in South Africa, at Megawatt Park, solving South Africa’s impending energy meltdown,” she said.