Eskom's 10-month streak without power cuts is a positive step, but the auditor-general warns of ongoing financial and operational challenges. The utility's performance fell short of targets, and it lacks adequate systems to track financial irregularities. Municipal debt and the need for operational efficiencies remain major concerns.
Despite stabilizing the electricity supply, Eskom remains at risk, according to the auditor-general. The state-owned power utility has gone 10 months without implementing power cuts that plagued the economy for years and is taking steps to bolster its renewable energy capacity. However, significant underlying issues still need to be addressed, from cutting costs to collecting debt owed by municipalities, the watchdog said in a presentation to lawmakers.
Eskom achieved less than 43% of its performance goals in the financial year to March 2024, including saving less than half of its target of R22.4-billion, the auditor-general revealed. The auditor-general highlighted a concerning lack of appropriate systems, processes, and controls within Eskom to accurately quantify irregular expenditure, fruitless and wasteful expenditure, as well as losses stemming from criminal conduct.The utility's efforts to increase revenue hinge on its ability to achieve operational efficiencies and the energy regulator's determination on how much it can raise electricity costs. Higher prices, considered cost-reflective, could unfortunately fuel demand for illegal electricity connections and vouchers, according to the presentation. Energy regulator Nersa is set to announce its decision on tariffs Eskom can charge for the next three financial years on Thursday. The auditor-general pointed to municipal debt to Eskom, which has surpassed R95-billion, as one of the biggest viability risks facing the utility, after debt servicing costs. The watchdog criticized the response to its previous findings, stating that there has been very little progress in implementing recommendations made by auditors over the years to address the root causes of these problems.
Eskom Electricity Power Cuts Financial Performance Debt Municipal Debt Renewable Energy Auditor-General Nersa Tariffs Operational Efficiencies
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Eskom's Restructuring Plans Threatened by Municipal DebtSouth African municipalities' outstanding debt to Eskom is jeopardizing the state-owned power utility's restructuring efforts, particularly its plan to separate its distribution unit. Municipalities owe Eskom R95.4-billion, hindering Eskom's financial stability and the future viability of the distribution industry. Despite a debt-relief program announced by the National Treasury, many municipalities are failing to comply with its conditions, leading Eskom to seek Treasury's direct intervention.
Read more »
Orlando Pirates Double Deal: Appollis and Matuludi Deal StallsThe proposed transfer of Oswin Appollis and Thabang Matuludi from Polokwane City to Orlando Pirates faces further delays due to disagreements over the player swap involved in the deal.
Read more »
South Africa's Smart ID Card Rollout Stalls: Years Behind Schedule and Facing New ChallengesSouth Africa's plan to replace its aging ID book with a smart ID card, initiated in 2013, has faced significant delays and encountered new hurdles. Despite allocating funds for technology modernization and aiming for a phased rollout starting with the elderly and first-time applicants, the system only opened to the broader public in 2016. The government aimed to phase out the old ID books by 2021, but the smart ID card system has fallen short of its production targets. Furthermore, permanent residents are still unable to apply for smart ID cards, presenting a major obstacle to the complete replacement of the old system.
Read more »
Kaizer Chiefs Set to Sign Tashreeq Morris as Feisal Salum Deal StallsKaizer Chiefs are closing in on a deal for SuperSport United striker Tashreeq Morris. However, their pursuit of Tanzanian midfielder Feisal Salum has hit a snag as Azam FC rejects their offer.
Read more »
Mo'unga's Japanese Commitment Stalls All Blacks Return, Boosting Springboks' Eden Park ChancesRichie Mo'unga's continued commitment to his Japanese club, Toshiba Brave Lupus, means he will not be available for the All Blacks until at least June 2026, hindering coach Scott Robertson's plans to restore the team's dominance. This news provides a significant boost to the Springboks' hopes of becoming the first team to beat New Zealand at Eden Park since 1994.
Read more »
Sundowns Still Seek New Home for Nku After Stellenbosch Deal StallsLesiba Nku's move to Stellenbosch FC has fallen through, but Mamelodi Sundowns remain committed to finding a new club for the player. Despite injuries hindering his performance, Nku is exploring loan opportunities before the transfer window closes.
Read more »