Eskom has reported a net loss of R12.3-billion for the year which ended 31 March 2022. The power utility says the financial loss is largely due to high finance costs and the usage of Open Cycle Gas Turbines to supplement generation capacity.
Eskom has reduced its gross debt from R401-billion to R396-billion. Eskom outgoing CEO Andre De Ruyter says the parastatal’s high debt remains unsustainable.
“Our net loss while still unacceptably large at R12.3 billion is a 51% improvement compared to the prior year sales volumes were moderately up after a recovery in demand following the COVID pandemic. And we saw the balance sheet continue to show some improvement as you can see there, we spent approximately R70-billion on repayment of debt as well as interest paid.”
Eskom’s annual results show improvement in financial performance, however, continued poor plant performance and high debt levels continue to be a concern
To view the full suite of reports for the year ended 31 March 2022, go to https://t.co/v6vpxeOVpk pic.twitter.com/WmHf46gv9y
— Eskom Hld SOC Ltd (@Eskom_SA) December 23, 2022
Meanwhile, Eskom says it will abide by the Constitutional Court decision while exploring measures to safeguard its best interests in relation to the ConCourt’s latest decision.
The Constitutional Court has dismissed an appeal by Eskom against an interdict preventing it from reducing electricity supplies to two municipalities in the Free State and Mpumalanga.
The court ruling follows a legal challenge by two rate payers’ organizations against Eskom’s unilateral decision to cap the volume of electricity over debt.
In 2020, the Vaal River Development Association and the Lekwa Ratepayers’ Association took Eskom to court after it reduced electricity supply to the Ngwathe and Lekwa municipalities.
Eskom CEO Andre De Ruyter explains. “The continuing debt in area municipal debt is of grave concern to Eskom and its board while we respect the court’s decision and we intend to abide by it, it does beg the question, who will service the debt that creates enormous moral hazard for municipalities who are in many instances very poorly governed, who have displaced little commitment to pay their debt.”
Eskom releases its delayed 2021/2022 financial results:
