Eskom announces R13.2b net profit

Eskom on Thursday announced a R13.2 billion net profit from the 2011 financial year.

Eskom flags.

CAPE TOWN - Eskom on Thursday announced a R13.2 billion net profit for the 2011 financial year.

This is the third consecutive year the power utility has reported a surplus.

Profits will be reinvested in Eskom's capital expansion programme, notably to fund the construction of two new power stations, Medupi and Kusile.

Eskom increased its electricity revenue to R113 billion.

This was mainly due to the 25.8 percent tariff increase approved by the National Energy Regulator of South Africa.

In the last financial year, Eskom added 155,000 households to its electricity grid, bringing its total to 4.2 million homes nationwide.

Eskom's debt is expected to grow to over R300 billion over the next three years as the power supplier continues to secure loan agreements.

Meanwhile, Eskom officials urged people to save electricity to prevent power cuts over winter.