Eskom received a R16bn payment from the National Treasury at the end of July, which is part of the R254bn that the power utility stands to receive to pay a big part of its total debt load of R423bn.
Eskom sees no need to borrow any new money over the next three to four years to fund its electricity generation, transmission and distribution operations because the government is starting to take over a portion of its smothering debt load.
The government recently provided Eskom with R16-billion, the first tranche of the R254-billion that the power utility stands to receive to pay a big part of its debt — giving it the breathing room to fund its operations instead of servicing hefty borrowings.
Eskom received the R16-billion payment from the National Treasury at the end of July, which the power utility used to settle borrowings that came up for maturity/repayment. Eskom expects to receive another tranche in October. Once fully transferred over the next three to four years, the R254-billion will substantially reduce Eskom’s total debt of R423-billion.
The government argued in the February Budget that it was necessary to give Eskom a R254-billion lifeline — in addition to the more than R517-billion in state bailouts it has received over the past 17 years — to get the power utility into financial shape and open up the electricity market.
Acting Eskom CEO Calib Cassim said the government’s latest financial help…