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Eskom’s Full-Year Financial Results Show SA In Deeper Power Crisis

Eskom’s Full-Year Financial Results Show SA In Deeper Power Crisis

By Sikonathi Mantshantsha And Carol Paton | From BDLive

Eskom’s precarious position was laid bare at a results presentation on Tuesday, with all major performance metrics worsening to their lowest levels yet. From the generation performance of its ageing coal-fired power stations to the financial metrics, the utility is in the weakest position in which it has ever been.

Eskom also announced that the completion of its three major capital projects that will bring new power on to the grid, have all been delayed a further two years.

Generation plant performance, which measures the availability of power stations to produce electricity, dropped to 73.7% from 85.2% five years ago. Its target for the year was to achieve 80% plant availability.

Electricity sales declined to 216.3GWh, from 225GWh in March 2012, as a result of breakdowns. This reduced net profit 49% to R3.6bn, while its cash on hand dropped to R8.9bn from R19.7bn in March last year.

Despite this, Eskom put a positive spin on its performance, saying it had managed to supply electricity on average 96% of the time, load shedding notwithstanding. “This is not a hopeless situation. We’re cash positive from operations,” said CEO Brian Molefe.

Demand from mining and industrial users fell in the year ended March, while municipalities and agriculture consumed more power. Municipalities and households owe the utility about R9bn in unpaid revenue that is outstanding for more than 60 days. This was of “serious concern”, the utility said.

Read more at BDLive