Eskom releases annual results
Eskom's financial results show the parastatal made a profit, but still needs to borrow about R20bn.
JOHANNESBURG - Eskom says independent power producers are now providing 1.8 gigawatt of electricity to the national grid and it has experienced a decline in sales to industrial markets such as mining.
The power utility released its annual results in Johannesburg today.
It has also announced that it managed to raise R49.5 billion of external funding.
Acting CEO Brian Molefe says the utility has managed a net a profit of R3.6 billion.
He also said the bulk of debt comes from municipalities.
Molefe says the utility is making progress to stabilise the business.
The financial results showed the parastatal made a profit, but still needs to borrow about R20 billion from the domestic market and international bonds.
Molefe said Eskom generated about R27 billion in operations and says financial recovery will be achieved through cost effective electricity pricing & internal savings.
He added that bulk of Eskom's debt is from non paying municipalities.
The acting CEO said the utility will deal with tariff increases again next year, after its application earlier this year was turned down.
Molefe said while Eskom was refused the money upfront to buy diesel, the cash itself has been agreed upon.