No worries says Eskom, we’re good
‘DOING WELL’: UTILITY HAS HIGH LIQUIDITY
R1obn is owed by municipalities and funding is also on its way – spokesperson.
Despite being downgraded by Moody’s this week, Eskom says there’s no reason to worry as liquidity levels remain healthy. Speaking to The Citizen yesterday, spokesperson for the power utility Khulu Phasiwe said with government guarantees having been extended to 2023 and the country’s power system being able to operate without the implementation of load shedding over the last 22 months, Eskom was confident it was on a positive trajectory.
“It is also important to note that Eskom’s credit ratings are linked to government and if the sovereign credit rating is downgraded, it would have the same ripple effect on [other] parastatals.
“But Moody’s credit rating agency noted an increase of 53% in our capital requirements and that we are in a better position to raise more capital in the current financial year, despite low economic growth,” Phasiwe said.
Eskom’s chief financial officer, Anoj Singh, said they remained resolute they would acquire the required funding for the year, albeit under challenging market conditions.
“Our liquidity levels remain healthy and Eskom’s financial profile continues to improve and stabilise.
“Backed by the availability of the government guarantees and the stable financial profile, we do not foresee significant impediments in the execution of the remainder of the 2017-18 financial year funding requirement” he said.
Meanwhile, Eskom is presently owed just over R10 billion by municipalities.
According to Phasiwe, out of the R10 billion owed, R7.6 billion was owed by municipalities in three provinces.
“In the Free State, there are seven municipalities ranked among 20 of the top defaulters and they owe Eskom around R4 billion, followed by Mpumalanga, which owes around R2.6 billion and the remainder of the R7.6 billion owed to Eskom is from the North West.
“We are not happy with the rate at which we have been collecting the monies owed but we are comfortable because many municipalities have being making payments as opposed to the past, when no effort was made to even make payment arrangements,” he said.