Eskom will not be able to recover all its debt

Eskom offices
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Eskom’s Chief Financial Officer, Calib Cassim, says even with a 15% increase in electricity tariffs, the power utility will not be able to recover all its debt.

This as the National Energy Regulator, NERSA, commences public hearings in Cape Town on Monday.

The power utility has asked for a 15% increase over the next three years.

Eskom earlier said a R1.5 billion loan agreement signed with the French Development Agency last year will not significantly improve its balance sheet as it is R419 billion in debt.

Cassim says Eskom commenced the year with a budgeted loss of R11.2 billion.

He says: “All the financial ratios are reflecting a negative trend. What we are confirming is the loss that we see from March 2018 will be far greater than the loss for the 2018/19 year. We can’t afford to meet all our debt service commitments.”