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The logo of state power utility Eskom is seen outside Cape Town’s Koeberg nuclear power plant.
Eskom leadership says the ever-increasing municipal debt is a risk to the entity’s financial sustainability.
Municipal debt owed to the power utility is around R10 billion per year.
Eskom’s leadership and the board appeared before Parliament’s Committee on Electricity and Energy to among others, give a briefing on its finances and performance.
Eskom CEO Dan Marokane says municipal debt is a worrying burden on the books.
“The intervention from Treasury is not yielding results we anticipated. It continues to grow, we will show you a list of municipalities, not to name and shame but to show you the scale of challenge. It does place risk in as far as financial sustainability of the business is concerned.”
Eskom says it has saved more than R16 billion in diesel compared to last year. Marokane says their performance has taken an upswing, with savings to show.
“Our financial and operational performance has improved. Eight months of no loadshedding comes at the back of serious improvement in generation recovery plan execution and savings in diesel costs when compared to last year.”
VIDEO| Municipalities including the City of Johannesburg have been struggling to settle their Eskom debt.
