Embattled power utility Eskom reported a loss of R20.7bn in the 2018/2019 financial year, with municipal debt rising to just under R20bn.
Releasing the company’s financial results Tuesday, outgoing CEO Phakami Hadebe said the debt excludes Soweto with that debt increasing from R15bn in 2018 to R18bn in 2019.
The power utility said the loss was induced by the escalating municipal debt; a lower-than-expected 5.23% tariff increase granted by the energy price regulator for the 2018/19 financial year; a 1.82% decline in sales volumes; and an above inflation wage settlement with unions.
Public Enterprises Minister Pravin Gordhan announced Monday that Eskom Chairman Jabu Mabuza would take over from Hadebe as the acting CEO of Eskom.
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