Treasury: Eskom continue to make a loss despite bailout

Despite a 9.61% tariff increase approved by the National Energy Regulator of South Africa and a R21.9 billion bailout from the treasury, Eskom is set to post a R21.2 billion loss. approved by the National Energy Regulator of South Africa and a R21.9 billion bailout from the treasury, Eskom is set to post a R21.2 billion loss.

“Eskom’s debt stock swelled to R439 billion — about a 10% increase over the year — due to the weakening rand and borrowing activities. It earned less revenue than anticipated and spent more, especially on diesel [R21.36 billion], which was more than double the previous financial year,” Godongwana said.

In March, Eskom said only a few municipalities had entered into active agreements with it, despite developing a debt management strategy. The utility plans to have its first gas to power project up by 2028 following consultation with both Nersa and Minister of Mineral Resources and Energy Gwede Mantashe to build a new combined-cycle gas power station in Richards Bay.

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