Eskom has run out of cash to buy diesel and the company says it will not overspend as in the past. This means extreme load shedding is on the cards. | News24_Business
The embattled power company says it will not overspend as in the past.For more financial news, go to the Eskom said on Sunday that it has run out of cash to buy diesel and does not plan to order any more until 1 April 2023. At a state of the system briefing last week, Eskom Chief Operating Officer Jan Oberholzer said that since 1 April, Eskom has spent R12 billion on diesel against an initial budget of R6.1 billion. This was later revised to R11.1 billion.
The implications of Oberholzer's statement are beginning to sink in as SA starts the week on Stage 4 load shedding. In the past, Eskom has overspent its diesel budget excessively, arguing that the R500 million a day per stage cost to the economy is greater than the cost of buying diesel. Eskom has therefore spent profligately on diesel to keep the lights on, with the only cap being the amount of diesel that can physically be delivered and burnt each month. This has equated to about R2.
On Sunday, in an exchange with analyst Chris Yelland published on Twitter, Eskom spokesperson Sikonathi Mantshatsha confirmed that Eskom did not plan to procure more diesel until 1 April next year and that its tanks were empty.
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