Hadebe: Struggling Eskom facing a ‘death spiral’

Hadebe made the comments shortly after chairman Jabu Mabuza announced that Eskom incurred a R20.7 billion loss in the 2018/2019 financial year.

This is an increase from R2.3 billion loss during the previous financial year.

“The cost of Eskom has been rising and decreasing revenue and bottom line has been decreasing. We are now facing the death spiral and this is because of a number of our clients moving off the grid,” said Hadebe.

The ailing power utility was handed a R59 billion lifeline by Finance Minister Tito Mboweni last week.

However, the utility’s debt is not the only challenge it is facing.

The power utility will from next month be without a permanent Group CEO as Hadebe’s tenure comes to an end this week.

Mabuza has been appointed as interim CEO and will serve in the position until the end of October.