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Eskom posts R 20.7 billion loss for the 2018/19 financial year.

Eskom announced a R 20.7 billion net loss after tax for the financial year ended 31 March 2019.

This loss is up from R 2.3 billion in the previous financial year.

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This follows Finance Minister Tito Mboweni announcement last week of a R 59 billion bailout for Eskom from government to be paid in two installments: R 26bn in the 2019/20 financial year followed by R 33bn in the 2020/21 financial year.

“Eskom’s financial trajectory is not sustainable. South Africa cannot afford a recurrence of load shedding, as we stare down the slow collapse of the entity.
This will have irreparable consequences for the economy and ordinary citizens,” said Natasha Mazzone the DA Shadow Minister of Public Enterprises.
“The utility will require expert leadership to take control. We have seen this scenario of interim appointments play out time and again at state owned entities (SOEs), which only leads to uncertainty and instability. This is exactly what Eskom, and our national economy does not need.:
 
“The DA has an alternative plan to save and stabilise Eskom to secure South Africa’s power supply, through our Cheaper Energy Bill, which seeks to break Eskom into two separate entities – a generation entity which is privatized and a transmission/distribution entity.
This would reduce the cost of electricity, bring about much-needed competition and ensure that South Africa is not being forced to pay for the corruption and mismanagement which has taken place at Eskom,” added Mazzone.

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