Eskom has had its ups and downs as the national supplier of electricity. The power utility has even managed to rake up a debt of R488 billion and plans are in motion to save it.
Eskom hopes to save R14.1 billion for the 2021 financial year. Deputy President David Mabuza said Eskom is aiming to save a total of R55.6 billion in the next 3 years.
This is being done as part of the financial turnaround plan to make Eskom more financially stable.
“The 2020/21 corporate plan outlines a cost savings target of R55.6 billion over a three-year period, from financial year 2021 to financial year 2023." said Mabuza.
Government has been giving support to Eskom to help it cover its debts of nearly R500 billion.
By March next year, Eskom hopes to have fully separated into three divisions: generation, transmission and distribution.
“The end state of the process is to ensure that all three divisions will be able to operate as standalone and financially viable businesses. This will further ensure that Eskom is able to mitigate the risks to debt and lender security, as well as asset base. In view of this, we are comfortable with the progress towards achieving the milestones envisaged in the roadmap.” said Mabuza.
He said despite efforts to revive Eskom, piling municipal debts have been negatively affecting Eskom's revenue. Mabuza said the government fully supports Eskom's efforts to collect outstanding debts.
“We therefore fully support Eskom’s efforts to collect revenue by following its credit control measures, and we reiterate our commitment made in both Houses of Parliament, to ensure that organs of State do expedite payment of outstanding debts owed to Eskom, and that they settle all outstanding debts to municipalities.”
Chief executive director of Eskom, André de Ruyter said Eskom has cut 2 000 jobs over the last 10 months and many employees will not be receiving bonuses.
“You can imagine that morale is low, people are feeling quite despondent. We have taken a decision not to give any increases to management this year. Also, in order to contain our costs, there will be no bonuses.”
With the changes and cuts that have been made so far, de Ruyter said the risk of loadshedding will be reduced by September 2021.