REVEALED: Here is what Eskom spent BILLIONS on
Eskom has reported a net loss after tax of R23.9 billion for the year ended 31 March 2023. Here is what they spent it on.
Eskom has reported a net loss after tax of R23.9 billion for the year ended 31 March 2023.
REVEALED: HERE IS WHAT ESKOM SPENT BILLIONS ON
Believe it or not, the power utility effectively doubled the loss it reported for the year prior.
It was recently revealed that the state-owned power utility presented its annual results for the 2022/23 financial year and that municipal debt had increased to R58.5 billion.
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SO WHAT DID ESKOM SPEND THE BILLIONS ON?
Martin Buys, acting chief financial officer at Eskom, said generation supply constraints resulting from poor plant performance and delays in commissioning new independent power producer capacity had the most significant impact on financial performance.
Buys said the impact was two-fold, with Eskom forced to increase its reliance on open-cycle gas turbines to supplement supply and load shedding negatively affecting sales volumes.
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CRIMINAL CONDUCT, INCLUDING THEFT, ILLEGAL CONNECTIONS, CORRUPTION AND VANDALISM ADDED TO THE LOSS
According to Buys, criminal conduct includes theft, illegal connections, corruption, and vandalism also added to the financial loss. This figure reached R6 billion during the 2022/23 financial year.
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Buys provided a breakdown of Eskom’s net debt during the 2022/23 financial year. The highlights can be summarised as follows:
- Debt securities and borrowings increased by 7% from R396 billion to R424 billion
- Lease liabilities reduced by 6% from R8.6 billion to R8.1 billion
- Cash and cash equivalents decreased by 53%, and payments made in advance by 11%
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