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.<\/p>\n
“We have enough money to pay our daily bills, said spokesperson, Andrew Etzinger. “We aren’t bankrupt, he said.<\/p>\n
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.”<\/p>\n
Eskom has approached government for an immediate relief of R3 billion, but is also looking for R20 billion for additional breathing room.<\/p>\n
Energy expert, Chris Yelland said that Eskom is using as much as R1 billion worth of diesel on a monthly basis. \u201cIts not in the budget, they (Eskom) have run out of budgeted cash.\u201d<\/p>\n
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.<\/p>\n
In a quarterly \u2018state of the system\u2019 update at Megawatt Park, in Johannesburg last week, Eskom chief executive Tshediso Matona said that the company\u2019s operational strain has put stress on its books.<\/p>\n
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.<\/p>\n
\u201cWe don\u2019t have the right tariff \u2013 in that it does not allow us to recover all our cost,\u201d Matona said.<\/p>\n
\u201cOur business model does not allow that to happen. There is an acceptance that going forward, we need to address that issue.\u201d<\/p>\n
Eskom wants to raise electricity prices<\/strong><\/a><\/p>\n Eskom bailout not the answer: Finance Minister<\/strong><\/a><\/p>\n