Despite R55bn loss, Eskom believes it's turning the tide

CAPE TOWN - Eskom says while it's not proud of the qualified audit and financial statements its presented for the 2023/24 financial year, it’s well on its way to turning the tide. 

The losses suffered in the past financial year were more than double that of the previous year. 

But nine months into the current financial year, Eskom said that a massive shift in the balance sheet was already on the horizon for 2025. 

From a R55 billion loss, Eskom is projecting profit of R10 billion by the end of March.

ALSO READ:

• Municipalities' mounting debt threatens Eskom's return to profitability

• Eskom reveals after-tax loss of R55 billion for 2023/2024 financial year

While Eskom’s latest financial statements continue to show up its poor internal controls, the power utility said that the figures were already poised for a bumper 2024/25 financial year, buoyed by limited load shedding this year and reduced diesel costs.

Sales were also increasing, albeit by only around two to three percent. 

Chief executive, Dan Marokane, believes Eskom's darkest days are behind it. 

"We are now positioned to really be on an upward trajectory as far as the business performance is concerned."

Marokane defended Eskom's latest application to the energy regulator for another hefty tariff increase in the new year. 

"We believe and still maintain that cost reflective tariff is necessary for the business not to go back to the back and forth with regards to its financial certainty."

He said Eskom would be reworking its proposals for free basic electricity for the poor and vulnerable, as a more than 36% tariff hike looms in the future.