Eskom reduce debt to R396bn, report R12bn net loss
Struggling power utility Eskom has managed to reduce its debt and loan accounts from R401.8 billion in 2021 to R396.3 billion in the latest financial year.
This was revealed by the outgoing CEO Andre de Ruyter during the utility’s performance overview for 2022 financial year ending in March.
De Ruyter delivered the report on Friday afternoon.
According to the utility’s financial statements, the revenue increased to R246.5 billion due to 15.06% tariff increase, however, the utility also reported a of R12.3 billion from R25 billion.
De Ruyter said the utility received R31.7 billion equity support from government during the 2022 financial yer
“The financial loss is largely attributable to the unsustainably high finance costs and primary energy expenses, specifically the expenditure to supplement generation capacity through the usage of Open Cycle Gas Turbines.
“In spite of the marked improvement in the financial performance, good progress on the new build programme, the disappointing performance on the generation front is an indication that there is still a long way to go before Eskom can achieve long-term sustainability,” said De Ruyter.
Meanwhile, the utility’s CFO Calib Cassim said Eskom’s capital and tariff structure need to be permanently resolved to ensure long-term financial sustainability.
“In addition, the overdue debt by municipalities must be resolved. Eskom waits in anticipation the Nersa price decision on 12 January 2023 and the government’s debt relief solution to be announced in February next year.
“A net loss after tax of around R20 billion is expected for the financial ear ending 31 March 2023. This is mainly attributable to OCGT (Open Cycle Gas Turbines) spend exceeding the Nersa allowance, growth in municipal arrears and a shortfall in recovering debt service costs in the electricity tariffs.”
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