2024 with all its challenges, represents the sustainance of no loadshedding. These are the words of Dr Kgosientsho Ramokgopa, Minister of Electricity and Energy.
He was speaking at a media conference, at at the release of Eskom’s Integrated Annual results, from 01st April 2023- 31st March 2024.
The delay of financial statements, has had to receive condonation granted by the Speaker of Parliament.
Ramokgopa said the recovery, reflected in close to R65 billion loss, 9 billion less than the previous year’s, is an indication that the action plan has gained traction.
He also said Municipal debt has ballooned from R20 billion in the previous financial year, to a current R95 billion, reflected in the year ending 31March 2024.
The new transmission entity (the National Transmission Company South Africa, NTCSA) separation triggers once-off accounting adjustment leading to loss after tax of R55 billion.
Mteto Nyathi, the Chairperson of the Board, said the first six months of FY2025 (1 April 2024 to 30 September 2024) unaudited
results show remarkable improvement, with substantial efficiencies achieved and
a profit is forecast for the full FY2025.
“Today’s challenging results demonstrate the extremely tough choices we had to take, for which we are experiencing the benefits of today. We have continued to deliver progress and consistency in the diagnostic from two years ago to address the crisis that the current Eskom Board inherited when they took office in October 2022. Many of the actions we are working on require policy changes, so we cannot do this without the Government and in particular the ministries with oversight over Eskom’s operations who have been very supportive on this journey.”
Calib Cassim, Group Chief Financial Officer of Eskom said it is encouraging that the recorded loss before tax, is relatively lower, despite the momentous operational challenges.
“I believe that we have reached a turning point and that the 2024 financial year will be remembered as the year in which we laid the foundation for future success,” he said.
Municipal arrear debt is expected to
reach R110 billion by March 2025.
“The results our employees have delivered under the most challenging circumstances,
show what Eskom is capable of in a reformed market. For South Africa to reap the rewards of these efforts, the migration to cost-reflective tariffs is a crucial step, not just for Eskom’s financial sustainability, but to foster a competitive future electricity supply industry that attracts investment and enables market players to operate and maintain their assets in a reliable state,” said Dan Marokane, Group Chief Executive, Eskom.