Share

Eskom upgrades to cost R400bn

Johannesburg - Power utility Eskom is likely to run up R400bn of debt over the next three years as it pays for upgrades to keep South Africa's lights on, chief executive Brian Dames said on Wednesday.

In a briefing accompanying the utility's interim results, Dames also said the power supply would remain tight until the first units of two major new power plants started to come on line.

“We have a very constrained power system,” Dames said.

South Africa's grid, which almost collapsed in 2008 in a supply crunch that hit economic growth, is feeling the strain at the moment because of routine maintenance, but Dames said 385 megawatts would be added to the system by the end of the year.

The first phase of the massive 4 800 MW Medupi coal-fired power station could be on line from May 2013 if all contractors meet their obligations, Eskom chief financial officer Paul O’Flaherty told the same briefing.

Eskom has had to impose hefty tariff increases over three years to pay for new power stations and improvements to the grid after two decades of underinvestment.

Those hikes have started to show through in increased revenues, with the firm reporting receipts of R63.8bn in the first six months of the year, up from R51.1bn from same period last year.

That represented a profit of R12.81bn, from R9.5bn a year ago.

Eskom said its surpluses would be reinvested or used to pay down debt.

 
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.88
+0.3%
Rand - Pound
23.86
+0.2%
Rand - Euro
20.39
+0.2%
Rand - Aus dollar
12.31
+0.2%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders