Eskom announces R55 billion loss: Outlook for future brighter

Eskom has confirmed a R55 billion after-tax loss for this financial year, with the embattled state-owned entity pointing to the unbundling of its transmission business. Despite the grim results, Eskom is optimistic that the tide is set to turn in the first quarter of 2025.

The utility’s CEO Dan Marokane disclosed these revelations during the announcement of the utility’s financial results and audit outcomes for 2023/24.

CEO: Eskom lost key accounting skills

Marokane revealed that Eskom lost key accounting skills during a five-year period, during which no salary increases were implemented and the utility’s bonus system was removed. Nevertheless, the CEO is optimistic that the state-owned entity is in a far better position.

Marokane explained that operational improvements in plant performance saw South Africa enjoying over 250 days without load-shedding, reports EWN. The utilities diesel bill is R12 billion lower and, surprisingly, Eskom projects a profit of R10 billion next year.

Eskom has reported revenue amounting to R295.8 billion, a 14% increase from the previous you. This comes despite an 18% hike in tariffs during the same period with the utility’s sales dropping by 3%.

South Africans on utility’s losses

While leadership may feel optimistic that things are looking up at Eskom, citizens shared their own opinions on the announcement. Many were taken aback by the announcement that a sophisticated scheme saw employees at Eskom illegally selling electricity tokens. Take a look at just a few comments in response to Eskom’s current predicament :

“Rampant electricity theft – with its own staff colluding in a massive prepaid token racket – has hit Eskom harder than record levels of load shedding during its past financial year.” Runawayrene, @runawayrene

“Wow! ⁦@Eskom_SA⁩ today admitted that it’s staff colluded with illicit operators in fraudulent sales of prepaid electricity tokens and electricity theft reached 13.9 TWh in FY23/24 which is MORE than the 13.2 TWh lost in loadshedding. Why wasn’t this picked up earlier?”

“The overly simplistic mind thinks that ‘fixing’ Eskom is like changing a lightbulb. The turnaround is the fruit of André’s and Pravin’s work, grounded in arresting wanton procurement practices, appointing on merit, diagnosing issues and accommodating temporary pain for medium-to-long-term gains. André’s aggressive maintenance plan got us here, but we are not out of the woods yet.” Kung-Fu Joe
@kgoatlapa

What do you think contributed the most to Eskom’s losses?

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