We are not bankrupt: Eskom

 ·20 Jan 2015
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Despite ongoing discussions between Eskom and government for urgent funds, and admission that it is in financial crisis, the power utility says it is not bankrupt.

“We have enough money to pay our daily bills, said spokesperson, Andrew Etzinger. “We aren’t bankrupt, he said.

Etzinger said that the company’s immediate financial concern relates to its diesel bill. “It’s burning of fuel and its cost that is a problem.”

Eskom has approached government for an immediate relief of R3 billion, but is also looking for R20 billion for additional breathing room.

Energy expert, Chris Yelland said that Eskom is using as much as R1 billion worth of diesel on a monthly basis. “Its not in the budget, they (Eskom) have run out of budgeted cash.”

On Monday, Eskom said it would no longer send three executives to attend the costly World Economic Forum Annual Meeting in Davos-Klosters, Switzerland, following public outcry.

In a quarterly ‘state of the system’ update at Megawatt Park, in Johannesburg last week, Eskom chief executive Tshediso Matona said that the company’s operational strain has put stress on its books.

Matona said that fuel costs, reduced sales and increased debt, and cost overruns caused by the operational delay at Medupi power station in Limpopo province, meant that the company would need to raise tariffs.

“We don’t have the right tariff – in that it does not allow us to recover all our cost,” Matona said.

“Our business model does not allow that to happen. There is an acceptance that going forward, we need to address that issue.”

More on Eskom

Eskom wants to raise electricity prices

Eskom bailout not the answer: Finance Minister

We’re in a financial crisis: Eskom

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