Eskom, the scandal-plagued power utility Eskom, said on Monday it was not insolvent but was facing serious liquidity issues and would be in "trouble" if the situation persisted.
Eskom is in midst of a leadership crisis and has been at the heart of state capture allegations.
President Jacob Zuma his friends the Guptas have denied any wrongdoing.
Eskom spokesman Khulu Phasiwe said the firm’s sales growth had been muted while its operating cost were very high and its tariff for the current financial year were low.
"We are not insolvent but we are projecting that if we continue along this trajectory we might be in trouble," Eskom spokesman Khulu Phasiwe told Reuters.
"We as a company need to sort ourselves out and get our house in order so that when we go out to the market to raise money these things do not become a hindrance," said Phasiwe.
Online publication Fin24 and EE Publishers on Monday said the utility’s liquidity reserves were expected to fall to R1.2bn by the end of November, compared with a target of R20bn.
In its annual results for the financial year to end-March the utility reported a score of losses, saying it expected cash and cash equivalents to fall by R8.6bn to R20.4bn.