Eskom is approaching the courts in an effort to force energy regulator Nersa to reconsider electricity tariffs for the next three financial years.
South Africa’s indebted power utility Eskom was already searching for a CEO and an executive to lead a turnaround of the company. It will now have to cast its net even wider to include a treasurer.
Eskom’s 96-year history is replete with former CEOs who rose from within the debt-laden state utility to run the company. There are few obvious choices for the next CEO to come from those same ranks.
Eskom expects to report a loss of more than R15-billion in the year to 31 March, a record for any state-owned company.
Eskom is locked into a permanent loss situation and revenue is structurally limited. Expenses have ballooned due to inefficiencies, and electricity tariffs are not cost-reflective.
Eskom’s first-half profit plunged 89% and the situation at the South African state-owned power utility is likely to worsen in the next six months, chairman Jabu Mabuza said on Wednesday.
Eskom bought itself some financial breathing room after signing a R20bn short-term credit facility with a group of banks. The power utility needed the liquidity to see it through to the financial year that starts