Eskom’s debt troubles double in a single year
Jabu Mabuza says the power utility is locked in a loss-making position and is unsustainable in its current form
Eskom’s debt service costs have doubled in just a single year to R45bn, highlighting the perilous state of the power utility, which supplies about 90% of SA’s energy needs. The largest state-owned company, which has been cited as the single biggest risk to the SA economy due to its R350bn in state guarantees and the potential for power cuts to cripple industry, is financially and operationally in the worst state that it has ever been, analysts said. Its chair, Jabu Mabuza, said at its financial results presentation in Johannesburg on Wednesday that the utility is "locked in a permanent loss-making position" and was unsustainable in its current form. With debt service costs up 100% and expected to worsen, "this is about as bad as it gets", according to energy expert Chris Yelland. "The bottom line is it cannot go on like this." The company generated R26.6bn in cash from operations, far short of what it spent to service debt. Total debt jumped 14% to R419bn in the six months to end-Se...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.