STRUGGLING state-owned power utility, Eskom, has reported a loss of close to R24 billion for the 2022/23 financial year.
The loss has doubled from the 2021/2022 financial year, which was R11,9 billion.
This is an increase of an additional R12 billion putting it to R23,9 billion.
This was revealed by the acting CEO Calib Casim during a media briefing at the Eskom headquarters in Megawatt Park, Sunninghill, north of Joburg on 31 October.
Casim noted that despite a 9,61% increase in tariffs, the net loss after tax nearly doubled, raising concerns about the power utility's financial stability.
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He said the government's R254 billion bailouts has helped to stabilise the power utility and the electricity tariff increases of 18,65%, awarded for 2024 is expected to grow revenues while sales are expected to be lower by 2%.
Casim was reporting on the Eskom’s annual results for the 2022/23 financial year, when he revealed that the municipal debt has skyrocketed to R58,5 billion.
He said 28 municipalities have been approved to participate in the debt relief programme so far and collectively, these municipalities account for R26,7-billion of the R58,5 billion.
This year, Eskom has implemented the worst power cuts on record, with outages of up to 10 hours a day frustrating economic growth.
Cassim said that there have been 280 days of blackouts in 2023, which is significantly higher than the 65 days recorded in 2022.
“Reduced generation capacity and lower electricity sales, together with a spike diesel costs to run open cycle gas turbines and increased municipal arrears, contributed to the group’s poorer financial performance,” he said.
