Eskom boss in price hike plea

ESKOM boss Phakamani Hadebe made a desperate plea for a 15% electricity tariff increase, and while apologising for the mess the state-owned enterprise finds itself in he admitted that price hikes alone would not be enough to cover an inevitable R50 billion shortfall over two years.

Hadebe addressed civil groups and members of the public at the Cape Town leg of the National Energy Regulator of SA public hearings probing Eskom’s request for a 15% hike for 2019/20.

Painting a grim picture, Hadebe said Eskom’s total debt over the last 10 years increased to more than R400bn.

Said Hadeba: “South Africa has the cheapest electricity in the world, but that means nothing to the public out there. We also need to apologise to the public. There have been avoidable issues and it has been building overtime.

“It does, however, take time to change it. We understand that 15% is severe, but if we don’t do it we will have a much bleaker outlook,” he said.

Eskom chief financial officer Calib Cassim said municipalities owed Eskom billions but they were recovering amounts from them.

“…we are getting the monies for arrears debts but Eskom is in a dire financial state. We’re borrowing money to pay off other debt.”

Energy expert and member of the energy coalition Ted Blom questioned where the new dawn in electricity was.

“What is the outcome of the Eskom board’s turnaround strategy? The outcome of the ‘wise-men’ report?” | Jason Felix