Ramaphosa says Eskom is in 'crisis'

President Cyril Ramaphosa says Eskom's “financial position remains a matter of grave concern.” Courtesy #DStv403

JOHANNESBURG - President Cyril Ramaphosa says Eskom is in a 'crisis.'

Ramaphosa was delivering the State of the Nation Address in the National Assembly on Thursday.

“Eskom is facing serious financial, operational and structural problems,” he said.

Ramaphosa also said load-shedding impacted the country's economic performance.

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He said Eskom, however, has made progress to maintain its generators and has adequate reserves of coal.

Ramphosa said Eskom's “financial position remains a matter of grave concern.”

He added that the utility has “sufficient cash to meet its obligations until the end of October 2019.”

He said Eskom will continue to received further bailouts.

He said government has a strategy to deal with Eskom defaulting on its loans.

READ: High Court orders Trillian to repay nearly R600mn to Eskom

“We will, therefore, table a Special Appropriation Bill on an urgent basis to allocate a significant portion of the R230-billion fiscal support that Eskom will require over the next 10 years in the early years,” Ramaphosa said.

The President also said the power utility will soon be appointing a new CEO following Phakamani Hadebe's resignation. 

He said Chief Restructuring Officer will also be appointed to reposition Eskom's financial stability.

Ramaphosa said Eskom was working hard to recover money owed by municipalities and customers.

Ramaphosa had a stern warning for those not paying for electricity.

“The days of boycotting payment are over. This is now the time to build it is the time for all of us to make our own contribution.”

 

Source
eNCA