Eskom unable to service R450 billion debt

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The power utility Eskom is unable to service its debt of about R450 billion and has to borrow to pay it. This was revealed by Eskom’s acting CEO and board chairperson Jabu Mabuza in Parliament.

Mabuza is briefing Parliament’s joint committee on Public Enterprises and Appropriations on the special appropriation of R59 billion for Eskom over two financial years.

He’s told the committee about Eskom’s liquidity challenges.

“Our debt situation is reaching R450 billion. The cash that we generate from business, we are not able to service the debt hence we find ourselves having to borrow to pay the debt. Our revenue over the past ten years has been flat to 1% a year and the tariffs have not been cost effective.”