government bailout | Radio 94.7 FM

The power utility’s debt is reaching levels beyond R450 billion and Mabuza was in Parliament on Tuesday asking government for more money.

Eskom CEO and board chairperson Jabu Mabuza said the power utility’s debt levels have reached the ceiling.

Eskom’s debt is reaching levels beyond R450 billion and Mabuza was in Parliament on Tuesday asking government for more money.

He said the power utility has not done enough to generate more revenue.

The acting CEO also admitted that Eskom was borrowing money to pay off its debt.

“Our revenue over the past 10 years, increasingly so over the last five years, has actually been flat to about 1% per year. On the other side, we’ve had a ballooning debt that we have not been able to collect which has totalled to R38 billion.”

Mabuza said the only function Eskom could control was its own expenses.

Finance Minister Tito Mboweni tabled a bill before the National Assembly i
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With Eskom set to receive a R70 billion government bailout over the next few years, they could lose more than half of that amount before they even get going.

Another set of spiralling costs have floored the utility, who have been billed R36 billion by contractors working on the Kusile Power Plant.

The report – which was first published by City Press on Sunday – features a response from Eskom: They’ve confirmed that they received the whopping figure, but stressed that this won’t necessarily be the amount they have to cough up. According to the company, “it provided for a smaller amount in its total R161-billion Kusile budget.”

Why have Eskom been billed R36 billion from Kusile?
The bill itself consists of “unforeseen costs” that weren’t originally mapped out in the contractor’s plans. Kusile has been a nightmare for the entire Eskom grid, despite it being one of the most modern units in operation.

The build has b
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