Deputy President David Mabuza welcomes the Eskom interim financial results

Deputy President David Mabuza, in his capacity as the Chairperson of the Eskom Political Task Team, has welcomed the Eskom interim financial results for 2022, which were released yesterday, 15 December 2021.

The interim financial results show that Eskom registered an improvement in financial performance on a wide-ranging set of indicators, including

• An increase in net profit after tax to the value of R9.2 Billion

• a reduction in gross debt to R392 Billion

• An increase in revenue due to recovery in demand and sales volumes, as well as a higher tariff structure

The Political Task Team on Eskom welcomes these positive developments as they indicate that the work towards the financial stability of Eskom is yielding positive results.

The results also confirm the resolve of the task team in assisting the power utility in its path of transforming itself into a world class sustainable, professional, effective institution that will ensure security of energy supply. The task team has been providing guidance to Eskom and ensuring that its transformation programme is clear, transparent and results oriented.

These results also show that remarkable progress has been made and Eskom is gradually being repositioned on a path of optimal performance backed up by good governance, and long-term financial sustainability. There is no doubt that these results will boost confidence in the Eskom management team and the whole of society, thus creating a momentum towards full implementation of institutional reforms aimed at improving performance, transparency and accountability of the utility.

“We reiterate our support for the management of Eskom who have worked tirelessly to ensure that the utility is able to meet its obligation of providing electricity on a sustainable basis and in a manner that supports the economy’s growth expectations. While these are positive developments, we are not yet out of the woods and we urge the management and staff at Eskom to continue on the quest to restore Eskom to a utility that truly serves all South Africans,” said Deputy President Mabuza.

It is anticipated that the net loss for the financial year ending March 2022 will be much lower than the net loss reported in March 2021.

To this end, the task team will continue to provide political support to Eskom and oversee the implementation of a long-term and sustainable funding model for Eskom to deal with its current debt and liquidity challenges. The task team will also continue in its efforts to finding a permanent solution to the serious matter of municipal debt to Eskom.

Source: The Presidency Republic of South Africa