We need higher electricity prices or more bailouts – Eskom

We need higher electricity prices or more bailouts – Eskom

Eskom has said it will have to increase electricity prices or have to get more bailouts from the government at the expense of South African taxpayers.

The power utility on Friday released its financial results for the year ended 31 March 2020 and said it had experienced “significant operational and financial challenges”, resulting in Stage 6 load-shedding during December 2019 and further financial assistance from the government.

Chief Financial Officer Calib Cassim unpacked Eskom’s financial position, which he said had improved owing to government equity support of R49 billion during the year and R56 billion allocated to the 2021 financial year. He indicated, however, that cash from operations is insufficient to service Eskom’s debt commitments and therefore the support from government was necessary.

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Source: Mybroadband

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