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JOHANNESBURG – Public enterprises minister Pravin Gordhan has welcomed the announcement that Eskom will receive R254 billion in debt relief from the National Treasury.
In his budget speech on Wednesday, Finance Minister Enoch Godongwana set aside funds to service Eskom’s debt obligations over the next three financial years. The government will also take up R70 billion debt from Eskom’s balance sheet, reducing the huge debt to sustainable levels. Gordhan said Eskom’s debt stood at R422 billion in December from R396 billion at the end of March 2022.
“The debt relief will provide the power utility with cash from operations to increase the maintenance budget which is essential in improving performance of plants,” he said.
Improving plant performance is one of the key interventions in President Cyril Ramaphosa’s energy crisis plan, which prioritises the maintenance of the top six power stations to minimise load-shedding. During the debt relief period, Eskom will not be allowed to borrow money in the capital markets, Gordhan said.
“Therefore, it is critical that they continue with the saving programme and they drive efficiencies internally to reduce their cost base. The debt relief is government’s commitment to turn around the power utility and a clear indication that we will do everything in our might to reform Eskom and ensure its operational and financial sustainability,” Gordhan said.
Godongwana explained that the debt relief would consist of two components, the first being R184 billion, mediumterm. which represents Eskom’s full debt settlement requirements over the JOHANNESBURG - ActionSA said the outgoing Eskom CEO Andre de Ruyter’s recent interview with a private television station confirms its suspicions that the power utility exists for African National Congress (ANC) officials to plunder state coffers.
Following worsening rolling blackouts, de Ruyter made explosive remarks in the interview, which touched on the ANC’s alleged political interference in the State-Owned Enterprise. ActionSA has highlighted de Ruyter’s claims that evidence