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Eskom's Fiscal Nightmare: Losses More Than Double to R24 Billion Amid Record Load Shedding

Published November 01, 2023
1 years ago

South Africa's largest state-owned power company, Eskom, has reported a staggering net loss of R23.9 billion for the year concluding in March 2023. The alarming figure, as confirmed in Tuesday's delayed financial results briefing, is more than double that of R11.9 billion in reported losses for the prior year, indicative of the financial havoc wreaked by record levels of load shedding.


Acting group CEO, Calib Cassim, in his address of the briefing, emphasized that the time for delays and excuses was over. He asserted that Eskom's leadership expects that this last year of severe losses will pave way to stabilizing revenue with the forthcoming government aid.


Announced in the February budget, a bailout fund of R254 billion from the government is expected to aid Eskom considerably in the current financial year (2024). Nevertheless, the anticipated surge in resources seemed to crack under the mounting pressures of the last fiscal year which witnessed staggering data of 280 days of load shedding. The energy availability factor nosedived to 56.03% from 62.02% in 2022, while reduced electricity sales, increased diesel costs for operating open cycle gas turbines, and escalating municipal arrears all collectively contributed to Eskom's grim financial performance.


Eskom's recently appointed chairperson Mteto Nyati and acting chief financial officer Martin Buys concurred with Cassim on the much-needed government bailout. However, they also emphasized that the lifeline comes with restrictions from the National Treasury, including discouragement towards accumulating further debts.


The bailout graph explicates that from the total R254 billion, nearly R76 billion is assigned for this financial year. The first payment amounting to R40 billion has already been processed in August, with another one following in October.



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