In conversation with utility’s chief financial officer
Investigative editor and managing director at EE Publishers, Chris Yelland, caught up with Eskom’s new chief financial officer (CFO) on Thursday to find out more about the power utility’s financial position.
Calib Cassim CA(SA) was appointed to the position in November after serving as acting CFO from July 2017. He also serves as a director of Eskom Enterprises, Escap and Eskom Finance Company. I think that at the end of the day, we need to ensure we have a sustainable electricity supply industry and the issue is how best Eskom can contribute to that sustainable future.
I fully support and am comfortable with what the president [Cyril Ramaphosa] said in his State of the Nation address last week, and the direction set forth. Now it’s about getting into the details. Transparency is in the interests of everyone. The president did mention that further details of the balance sheet support will come through the minister of finance’s budget speech later this month.
But we must acknowledge that the government has clearly said they will support us through the R350 billion of guarantees and ... the R83 billion equity injection.
At the end of the day, if Eskom cannot supply the electricity needs of the country, we understand the impact on the economic growth aspirations of the president and the country. So we have to resolve the situation. Municipal arrear debt currently amounts to R18 billion and is growing at about R450 million per month, while Soweto arrear debt adds a further R17 billion, growing at about R50 million per month. Thus, in total, arrear debt is growing by R500 million per month.
Eskom has tried, through its processes, to interdict and cut off nonpaying municipalities. However, what we find is that we are being interdicted by paying customers within municipalities, and many of the court judgments have ruled that paying customers within municipalities can pay Eskom directly.
With regard to Soweto, we’ve looked at technology and the rolling out of prepayment electricity meters, but have experienced resistance from the community.
Chris Yelland is MD and Roger Lilley editor at EE Publishers.
The entire article can be read on Moneyweb.co.za