Amidst a record year of load shedding and Eskom’s poor financial performance, Finance Minister Enoch Godongwana has tabled a new Bill to help counter the dire state of Eskom’s finances.
Although the medium-term outlook for load shedding has improved due to Eskom’s improved performance and the use of alternative power systems by households and businesses, the embattled utility still faces a massive revenue., Eskom recorded its biggest-ever loss of R24 billion as losses due to criminality skyrocketed, and wealthier customers transitioned to alternative power sources.
This was done to ease pressure on the company’s balance sheet and free it to invest in transmission and distribution infrastructure. This debt was given strict conditions to ensure that public funds were used appropriately. A key condition is that the loan would not be converted to equity if Eskom violated the conditions.