Eskom is not sustainable, warns its Chairperson Jabu Mabuza

It’s simply unsustainable to carry on in the way they’ve been carrying on… Politically there’s going to be some hard choices made by the President… The only man with a plan…

Chris Yelland, EE Publishers

Eskom on Wednesday forecasted a loss before tax of R11.2 billion in the current financial year.

The state-owned utility reported a R671 million profit in the six months to the end of September but said its performance in the next six months would be hurt by a wage deal with trade unions, higher maintenance costs and coal shortages.

In its current state, Eskom is not sustainable.

Jabu Mabuza, Eskom Chairperson

Eskom reported a R6.3 billion profit in the first half of the 2017/18 financial year before slumping to a R2.3 billion loss for the full year.

Eskom’s debt rose to R419 billion at the end of September, from R367 billion a year earlier.

The Money Show’s Bruce Whitfield interviewed energy expert Chris Yelland of EE Publishers.

Listen to the interview in the audio below (and/or scroll down for more quotes from it).

Today we saw a very frank and open disclosure of the dire financial position Eskom finds itself in.

Chris Yelland, EE Publishers

They can get their operational performance back to where it must be… On the financial side… the reality is that the politics of South Africa… will not allow Eskom to do what it wants with its prices…

Chris Yelland, EE Publishers

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This article first appeared on 702 : Eskom is not sustainable, warns its Chairperson Jabu Mabuza


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