Mabuza: Eskom can’t rely on borrowings & tariff increases every time
Acting CEO Phakamani Hadebe says it has become clear that sustaining Eskom cannot be achieved through borrowing, and the recent 2.2% tariff hike didn't help with financial issues.
JOHANNESBURG – Eskom's new top management says that it's working hard to boost investor confidence so that the state-owned entity can deal with its multi-million rand debt.
Eskom released its interim financial results on Tuesday for the six months ending in September 2017.
The results show the dire financial situation the utility is in, with profits down by 34% and debt sitting at over R300 billion.
Acting CEO Phakamani Hadebe says it has become clear that sustaining Eskom cannot be achieved through borrowing and the recent 2.2% tariff hike didn't help with financial issues.
Hadebe says they will be meeting with the National Energy Regulator of South Africa (Nersa) to discuss the low tariff hike and Eskom’s position financially.
But in the past ten days he's been speaking to the utility's funders, who have given him a clear mandate.
“Then they said we’re not in a position to discuss with you the funding unless you deal with the elephants in this room, which is corruption.”
Chairperson Jabu Mabuza says Eskom will raise funds.
“We can’t be reliant on borrowings and tariff increases every time.”
Eskom has also made it clear that it cannot commit to a nuclear build programme at this stage because it doesn't have the funds.