Eskom suffers financial loss of R5 billion in three months

Eskom has suffered a financial loss of R5 billion in the first three months of the year.

National Treasury told members of the National Assembly’s standing committee on appropriations that Eskom has been trying to get out of the woods following its myriad of problems.

Deputy Director-General of Public Finance in the National Treasury, Mampho Modise was briefing parliament on the spending of departments and State-Owned Entities in the first quarter of the 2023/24 financial year.

It emerged that during the first three months Eskom lost R5bn.

Treasury said they were concerned about the financial losses that Eskom continues to incur.

The power utility has been struggling over the last few years and has not recorded a profit in years.

The report tabled in parliament showed Treasury was also concerned about the energy availability factor that it has not reached a stage where Eskom will provide electricity on a reliable basis.

Minister of Electricity Kgosientsho Ramokgopa said recently they will need to expand the transmission lines in the country.

But the balance sheet of Eskom would not allow it because it has no financial resources to undertake such a massive project.

Ramokgopa said they will need to get the private sector to come to the party to expand the transmission lines.

The government would need more than R210 billion to expand transmission lines and this would have to be done over the next decade.

The expansion of the lines would enable the government to connect a number of renewable projects to the grid.

siyabonga.mkhwanazi@inl.co.za

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