Power utility, Eskom, is expected to announce a further loss in operating profit as it prepares to announce its interim financial results on Wednesday.
In August, the utility announced a R18.9 billion net loss for the financial year ended 31 March 2021.
An expert in the energy sector, Dr Roland Ngam from the Rosa Luxemburg Foundation says Eskom’s financial losses will continue, albeit at a much slower rate.
In the last financial results, Eskom announced that it was able to slash off R80 billion off its swelling debt of nearly R500 billion. The utility’s debt currently stands at just over R400 billion.
Dr Ngam says the culture of non-payment for electricity needs to be addressed once and for all.
Details of the unbundling process are also expected to be announced on Wednesday. So far, a separate transmission arm has been established and for the National Energy Regulator to grant it a transmission licence.
The power utility expects to start making profit in 2026.
Unbundling of Eskom
According to Public Enterprises Minister Pravin Gordhan, the unbundling of Eskom will allow for greater participation of the private sector in the generation of energy.
Gordhan was answering questions in Parliament alongside other Ministers in the Economics Cluster.
The ministers answered questions ranging from problems relating to energy supply, vandalism of rail infrastructure, as well as the protection of locals in the manufacturing sector against rising costs.
Gordhan faced questions about the unbundling of Eskom into three; which are generation, transmission, and distribution. Gordhan said the unbundling of Eskom will unblock several inefficiencies.
“Firstly it will allow for greater participation by the private sector and others in terms of generation of energy. Secondly, it will establish an independent transmission company and buying office which will be able to compare prices and decide which offer in terms of sale of electricity it will attract investment and perhaps even the distribution grid as well which is the responsibility of most municipalities in the country, although not all.”
The power utility says rolling blackouts will continue: