Eskom paints gloomy picture as profits shrink

File: Eskom is in financial crisis with over R400-billion in debt.

File: Eskom is in financial crisis with over R400-billion in debt.

eNCA

JOHANNESBURG - Eskom has painted a gloomy picture of a company living beyond its means.

The power utility announced its financial results for the six months to September. 

Plagued by corruption as part of the state capture project, Eskom is now struggling to keep head above water.

CEO Phakamani Hadebe says he cannot guarantee to keep the lights on for the rest of the year.

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He cites constraints with coal supply as a result of problems with Gupta-owned supplier, Tegeta.

Meanwhile, Eskom chairman Jabu Mabuza said the power utility is in a precarious financial position, with huge debt levels and constraints in revenue.

Municipal debt has ballooned to R17-billion with hopes a solution will soon be found. 

Eskom said it’s reviewing Nersa’s decision of a 5.3 percent tariff increase and will start implementing a strategic turnaround plan that will save R32-billion.

Source
eNCA