BUSINESS NEWS - Eskom’s earnings for the 2017-18 financial year took a R2 billion knock, with net profit down by R4 billion, while liquid assets dropped from R30 billion to R9 billion.
The utility also needs to source at least R72 billion to meet the financial obligations for the year, and a R20 billion loan has to repaid by the end of August.
But the interim board believes the first steps have been taken to save the national electricity giant from ruin. It will reveal a turnaround plan by the end of September.
Members of the interim board who were appearing before parliament’s energy oversight portfolio committee yesterday revealed these plans.
But members of parliament were not convinced they were doing enough to avoid being dependent on government bailouts and increasing electricity costs to consumers.
Yesterday, Eskom maintained the 5.2% electricity fee hike was insufficient, as the company had to service debts and recover billions of rands lost to coal procurement contracts, while simultaneously having lower than expected electricity sales over the past four years.
They said the National Energy Regulator (Nersa) erred in declining their requested 20% fee hike as it should have, among other things, taken note of increasing coal costs during the past financial year instead of referring to coal prices during the 2013-14 financial year.
