Eskom says it has seen an increase of over R 4 billion rand in municipal arrears debt for the last financial year.
The power utility Group released its interim results for the six months ended 30th September 2018.
@Eskom_SA is facing severe challenges:
– Financially: Eskom is in a debt reliant liquidity situation that has resulted from low tariffs, a decline of 0.8% in sales volumes year-to-date, primary energy and employee benefit costs increasing, and the continuing new build programme pic.twitter.com/8AEgx2ixRA— Eskom Hld SOC Ltd (@Eskom_SA) November 28, 2018
Speaking to the media at Megawatt Park Eskom Chairperson Jabu Mabuza says arrears by municipalities including interest had increased to R17 billion compared to 13 billion in March.
Mabuza says the utility has secured 73% of the 52 billion rand of funding it requires for the 2018/2019 financial year.
“As a board we are cognisant that to be able to achieve long term sustainability a significant improvement in financial and business discipline is required. We believe that we now have a deep understanding and what is required for us to move forward. Our results will confirm again what many of us have suspected. Eskom as how it is conceived and operates today is not sustainable We are locked into a permanent loss making position in that our revenue growth is structurally constrained.”
#EskomInterimResults2018 : Cash flow statement for the six months ended 30 September 2018 by Eskom newly appointed GCFO, Calib Cassim@Fin24 @BDliveSA @busrep @TimesLIVE @EngNewsZA #EskomResults pic.twitter.com/UO4H0wEiRR
— Eskom Hld SOC Ltd (@Eskom_SA) November 28, 2018
