Eskom urgently needs cash injection to avoid debt crisis, says CEO

Eskom, which supplies 90% of the country’s power but has struggled to meet demand, had a bid for a big electricity tariff increase rejected by a court this month.

It said its proposed urgent rate hike followed an error by the regulator Nersa, which in 2019 set Eskom’s tariff rises at 9.4% for 2019/20, 8.1% for 2020/21 and 5.2% for 2021/22. The money is going to have to come from somewhere. Either it comes from a tariff increase or it comes from an equity injection.

In July, the government allocated Eskom R59 billion over two years to service its debt, on top of the 10-year, R230 billion injection it provided months before that.

I smell another taxpayer bailout. 👃👀

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