Eskom could require additional funding

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The National Treasury has told Parliament that should Eskom fail to implement its funding plan by the end of March next year, it will end up requiring additional funding. This would be in addition to the special funding of R59 billion to be spread over two financial years from this year until 2021.

The power utility will first get R26 billion and R33 billion in the following financial year to assist with its financial obligations. Treasury Director-General Dondo Mogajane says labour, business and civil society must contribute towards solving the financial challenges that Eskom is facing.

Mogajane says the power utility must also implement stringent cost-saving measures.

“If they fail to execute their funding plan by 31 March, meaning if they are not able to reach their 100% funding plan, that means we may have to require additional funding plan in addition to the appropriation that we are requesting.”

Mogajane has told Parliament that it is time for labour and Eskom senior executives as well as its board members to make sacrifices by reducing their salaries. He says people must pay their bills and stop tampering with electricity metres while companies should consider reducing the cost of doing business.

“I’m calling for smaller profits in ensuring that we rebuild Eskom jointly government we are already playing our part we can do more… we are already proposing this Special Appropriation bill of 26 and 23 in February and we already committed to the next 10 years.”