President Cyril Ramaphosa claims that the improvement in Eskom’s financial position is a reflection of recovery in operational performance.
Ramaphosa attributed Eskom’s financial recovery to collaborative efforts across multiple sectors, including support from government.
“Thanks to the collaboration between different Government departments, the stewardship of the National Electricity Crisis Committee (NECOM) and hard work by the leadership and staff of Eskom, Eskom is turning the corner,” Ramaphosa stated.
On 3 October, Eskom announced in a media statement that there has been an improvement in the Energy Availability Factor (EAF) by over 70%.
The power utility highlighted that the month-to-date EAF reflects consistent gains in plant reliability and a reduction in unplanned outages.
Eskom emphasised that the reduction is a key to stabilising the grid and supporting the country’s economic growth.
Ramaphosa on Eskom’s financial results
Ramaphosa said Eskom’s latest financial results highlight the importance of remaining committed and demonstrate the advantages of strong partnerships.
“When we announced the National Energy Action Plan in 2022, the national power utility’s losses stood at R12.3 billion and its debt had ballooned to over R300 billion. At the time, Eskom’s auditors noted that there was “material uncertainty relating to Eskom’s ability to continue,” he stated.
According to Ramaphosa, Eskom’s improved financial position will allow it to invest in infrastructure development and maintenance.
“There are plans to invest more than R320 billion in expanding existing infrastructure,” he said.
The president also pointed out that the performance of Eskom’s coal-fired power stations has improved, noting a reduced reliance on diesel usage.
Challenges within municipalities
However, Ramaphosa highlighted the challenges related to municipal debt arrears, stating that they have increased by 27% compared to the previous financial year.
Ramaphosa said government will keep collaborating with municipalities to settle their debts to Eskom. He emphasised that this is crucial for the utility’s financial stability.
“Even as Eskom continues along the path to recovery, we continue to pursue the other pillars of the Energy Action Plan with equal vigour. These are accelerating the procurement of new generation capacity, increasing private investment and pursuing structural reforms to transform the electricity sector,” he added.
Furthermore, Ramaphosa assured that government would stay on the path of economic recovery to achieve its goal of inclusive growth and the creation of more job opportunities.
