State-owned entity Eskom made a loss of R55-billion after tax during the 2024 financial year.
This loss is an increase of the R26,1-billion loss after tax that Eskom made during the 2023 financial year.
The 2024 financial year covers the period of April 1 2023 to March 31 2024.
Municipality debt of R74,4bn
Meanwhile, in the 2024 financial year, municipalities in South Africa owed Eskom a total of R74,4-billion in unpaid electricity debt. This is an increase of the R58,5-billion that municipalities owed Eskom in unpaid municipal debt in the 2023 financial year.
This information was revealed on Thursday during Eskom’s announcement of its financial annual results for the 2024 financial year. The announcement took place at Eskom’s head office at Megawatt Park in Sunninghill, Sandton, in Johannesburg.
Present at announcement was electricity and energy minister Kgosientsho Ramokgopa. Eskom group CEO Dan Marokane, CFO Calib Cassim, group executive for generation Bheki Nxumalo and group executive for distribution Monde Bala.
Eskom board chairperson Mteto Nyati attended the results announcement virtually.
Since March 26 2024 to date, the country has not had load shedding for 268 consecutive days.
Top 10 defaulting municipalities
Cassim listed the top 10 municipalities and metros that owe Eskom as of November 2024. They are Emalahleni municipality (R8,5-billion), Maluti-A-Phofung municipality (R8-billion). Emfuleni (R7,1 billion), City of Tshwane Metro (R3,1-billion), Matjhabeng (R5,8-billion). City of Johannesburg metro (R1,1-billion), Govan Mbeki municipality (R4,5-billion). Lekwa municipality (R2,2-billion), City of Matlosana (R1,8-billion) and Ngwathe (R2-billion).
Cassim said municipal arrear debt continues to escalate due to poor adherence to the
municipal debt relief conditions. And also due to more recent challenges with the metros.
“The municipal debt relief programme is not delivering the desired results.
Unless a new solution is found, the separation of distribution is in jeopardy,” said Cassim.
Ramokgopa said he honestly told the Eskom board that the entity will never recover the money owed to it by municipalities. He said Eskom must implement municipal debt relief programmes that will prevent the debt from rising.
