Eskom’s newly-appointed interim CEO Calib Cassim has been working for the power utility for years and led a team to improve the financial state of the enterprise.
annual results showed improvement
in financial performance. However, it continued to have problems with infrastructure and high debt levels. The entity said revenue increased to R246.5bn due to a 15.06% tariff increase, supported by 3.4% growth in sales.Speaking about the annual results, Cassim said the entity was not making enough money to pay its debt despite receiving R31.7bn support from government in 2022.“Cash from operations remained insufficient to meet debt servicing and some capital investment requirements,” he said.Cassim also raised concerns that municipalities’ debts were a heavy burden on the entity.
“This is mainly attributable to OCGT [open cycle gas turbine power stations that primarily use diesel] spend exceeding the Nersa allowance, growth in municipal arrears and a shortfall in recovering debt service costs in the electricity tariffs.”Under Cassim’s leadership, Eskom undertook a public “name and shame” revenue collection strategy mainly directed at municipalities owing Eskom millions.
Last August Eskom threatened to disconnect power to the City of Tshwane municipality after constant delays in account payments.Eskom said the Tshwane metro was in breach of the electricity supply agreement and failed to pay its R1.6bn debt.The entity said inconsistent payments worsened Eskom’s financial position and placed a burden on it to continue providing municipalities with electricity.
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