‘Cost-reflective tariffs’ and resolving municipal debt are needed to turn Eskom around
Cassim said Eskom had realised an operating profit of R5.8-billion despite the difficult environment during theand lockdowns, but its net debt service cost of R31.5-billion had resulted in a net loss after tax of R18.9-billion.
Outstanding municipal debt rose 26% to R35.3-billion for the period, with only 10 municipalities honouring their arrears payment agreements. “Cost savings alone is not a solution. Eskom’s capital position must be resolved. Cost-reflective tariffs and resolving the municipal arrear debt are required to achieve the successful implementation of Eskom’s turnaround and to ensure long-term financial sustainability. For its part, Eskom continues its concerted effort to reduce the debt and to improve gearing,” said Cassim., said the economic slowdown caused by the pandemic had led to the “unprecedented” decline in sales.
“The turnaround plan, which is overseen by a diverse executive committee comprising 56% black female representation, focuses on operations recovery, improving the income statement, strengthening the balance sheet, driving business separation and bringing about a winning, can-do culture,” said De Ruyter.
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