Concern over Eskoms R225-billion deficit
Members of the Portfolio Committee on Public Enterprises have raised concerns about the revenue shortfall of R225-billion reported in Eskom’s brief yesterday (September 3).
Eskom’s debt is said to be now standing at approximately R10-bn.
The power utility briefed the committee on its annual plan and financial results for the year 2013/14.
The committee said what was most worrying about the presentation was that the build programmes (such as Ingula, Kusile and Medupi) needed R300-bn and the company has a deficit of R225-bn.
The committee asked if the power utility’s financial challenges would lead to another electricity increase.
Chairperson of the committee, Dipuo Letsatsi-Duba, says the country could not afford not to have an efficient Eskom.
“Eskom having been downgraded is a concern for us as this will affect the power utility’s borrowing capacity. We, the country, need energy to create employment opportunities to expand and grow the economy,” adds Letsatsi-Duba.
She says that the committee believed that the success of Eskom does not only depend on their plans, it depends on assistance to get out of this situation.
“We want the power utility to be financially sustainable and the response measures presented today in addressing liquidity challenges will ensure that the company is economically and financially viable.”
Letsatsi-Duba says the committee was of the view that a lasting solution needed to be found in addressing the municipal debt owed to Eskom.
The meeting provided an opportunity for Eskom to clarify issues that have been in the public domain. -@TumeloBoksburg
