Eskom's De Ruyter warns of coming electricity tariff hikes
'The bad news is that we will probably have to have a greater increase in electricity tariffs in order to make up for a series of adverse Nersa decisions which we have successfully challenged in court,' Eskom CEO Andre de Ruyter said.
CAPE TOWN - Electricity tariffs will, unfortunately, have to be increased.
So said Eskom CEO Andre de Ruyter as the power company tried to stabilise its massive debt.
De Ruyter said that the utility was doing its part to save money.
"Internally at Eskom, we have to manage our costs and keep those under control. Over the past year, we have been able to deliver cumulative cost savings of R14.6 billion, so we are keeping our pencils sharp."
But South Africans would have to pay more for power, he emphasised.
"The bad news is that we will probably have to have a greater increase in electricity tariffs in order to make up for a series of adverse Nersa decisions which we have successfully challenged in court."
Municipal debt has increased.
"All of our customers have to pay us. In that regard the municipalities that collectively now owe us about R39 billion, that's about 10% of our total outstanding debt, will have to start paying up."
He added that Eskom had turned an operating profit of R5.8 billion, despite a challenging year.
But given its mountain of debt, the company has reported a net after-tax loss of R18.9 billion rand.