Eskom’s R250bn hole threatens sustainability
Public enterprises minister says government is looking into additional mechanisms to help utility
Eskom’s financial crisis is far bigger than previously thought, with a R250bn anticipated shortfall over the next three years, over and above the R69bn injection announced in February’s budget, threatening its sustainability. "We need R250bn. I’m not going to venture into how we are going to get it, but that is what we need," said Eskom chair Jabu Mabuza in an interview after a briefing held at Lethabo power station in the Free State on Wednesday. Public enterprises minister Pravin Gordhan said the government is looking into "additional mechanisms" to help the utility, which is drowning in debt of about R420bn it is unable to service from the revenue it earns, but did not elaborate. "There is definitely a shortfall. There was a shortfall on tariffs and a shortfall on what National Treasury could inject into Eskom, but remember there are additional mechanisms that we are looking at to ensure that Eskom’s debt burden is manageable," Gordhan said. The government has previously indicate...
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