We need electricity tariffs to rise by 28% - André de Ruyter, CEO – Eskom
Eskom made a net profit of R83 million in the six months to 30 September 2020.
Its operating profit for the period totalled R14.3 billion.
Despite the small profit, the state-owned utility expects a loss of R22 billion by the end of the financial year.
Eskom spent R15.3 billion on finance costs during the six months.
Its debt totals R480 billion (and counting).
#EskomMediaStatement— Eskom Hld SOC Ltd (@Eskom_SA) December 14, 2020
Eskom results show improvement in financial and operational performance for the first half of the year, although financial and operational challenges remain. #EskomInterimResults2020 #EskomResults pic.twitter.com/2ceQAcPqnc
Government support, for which we're very grateful, has been instrumental in ensuring that we can keep on servicing our debt. Unfortunately, this fiscal support does not structurally address our underlying debt.André de Ruyter, CEO - Eskom
The Money Show’s Bruce Whitfield interviewed André de Ruyter, Chief Executive Officer (CEO) at Eskom.
We either require cost-effective tariffs… or we need a substantial injection of equity to reduce our debt burden.André de Ruyter, CEO - Eskom
… our debt burden is extraordinarily high… We can either choose between continued taxpayer subsidies – which don’t even touch the principal debt - or we can move to cost-reflective tariffs…André de Ruyter, CEO - Eskom
A cost-reflective tariff needs to go up by about 28%... probably the last thing the economy needs… We propose moving to that cost-effective tariff in a staggered way… The alternative is continued taxpayer subsidies.André de Ruyter, CEO - Eskom
… keep our eye on every rand we spend. It’s a change of culture…André de Ruyter, CEO - Eskom
We’ve had 20 days of load-shedding [this financial year] … We’re showing improvement…André de Ruyter, CEO - Eskom
Trending, right now, on The Money Show:
Listen to the interview in the audio below.
This article first appeared on CapeTalk : We need electricity tariffs to rise by 28% - André de Ruyter, CEO – Eskom
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