Eskom’s liquidity challenges
Monday, 13 November 2017: Eskom notes the current media reports that relate to its liquidity challenges and financial sustainability.
Eskom has always maintained that the 2.2% tariff increase for FY17/18 will present challenges to the company’s liquidity position for the current financial year. As a result, Eskom has had to undertake certain financial commitments to ensure sufficient liquidity in line with its funding requirements.
Cost containment has been one of the key components of our strategy. The company’s cost-cutting measures are bearing fruit, with a saving of R47 billion realised from the FY12/13 to FY17/18.
In order to manage the surplus capacity Eskom has adopted an aggressive sales volume growth to support economic growth by encouraging increased local and cross-border sales.
To date, Eskom has secured approximately 56% of the funding requirements for the current financial year. However, the execution of the remaining funding requirement is largely dependent on Eskom being able to address the following: