Eskom Mabuza

Eskom’s financial situation is improving according to its interim financial results for the past six months in the 2021/22 financial year. Image: Flickr

Eskom R400 Billion debt: SA gov must assist, says the energy supplier

Like a friend in need of some cash, Eskom wants the government to pay R200 Billion of the power utilities’ massive R400 Billion debt.

Eskom Mabuza

Eskom’s financial situation is improving according to its interim financial results for the past six months in the 2021/22 financial year. Image: Flickr

National energy supplier Eskom fancies the South African government to pay 50% of its mighty R400 Billion debt, the company said on Sunday.

ESKOM R400 ESKOM DEBT: WHY IT’S URGENT

Rich nations are set to assist Mzansi in the mission to decrease reliance on coal and cut emissions, but the power utility needs to settle its enormous debt first.

The embattled energy supplier is facing a golden opportunity to earn $8.5 billion in loans and grants pledged to South Africa by world powers such as the U.S. and U.K. following COP26 climate talks.

However, Eskom’s total debt reflected an alarming R402 Billion ($26 billion) as of March 2021.

“It makes no sense to add more debt to the current 400 billion rand,” Eskom Chief Financial Officer Calib Cassim said via Citypress, as per Bloomberg.

“Government must take over 200 billion rands of it. It’s just like in one’s personal finances, where one has to make substantial progress with the payment of one mortgage before taking out another one, otherwise, you are risk of defaulting.”

ALL TALK AND NO ACTION?

Cassim added that Eskom, together with the Department of Enterprises and National Treasury, have only had futile talks since 2019 regarding its debt settlement.

According to Cassim, the nation’s economic policymakers, and managers of the government’s finances, Eskom was not provided any budget after last week’s accounts plan policy for the medium-term.

The power utility’s money chief concluded that Finance Minister Enoch Godongwana hinted at a plan to sell Eskom’s coal-fired power stations. The possible piece of business should assist a move to cleaner energy while also easing the R400 Billions debt.

ESKOM LOAD SHEDDING

Meanwhile, South Africans enjoyed a welcome break from blackouts this past weekend, it there are expectations of a comeback. Stage 2 came to an end last Friday 12 November 2021 at exactly 05:00.

All eyes will be on the national electricity provider for further communications this week.