Eskom latest: R400bn debt relief and Mantashe on taking Karpowership ‘seriously’

Eskom on Tuesday said it was “grateful” for government’s debt relief package, which they say will assist them in improving operations and eliminating load shedding.

The National Treasury’s Eskom Debt Relief Bill will take on almost R400 billion of the company’s debt, easing its financial burden.

Eskom debt relief

As per the bill, R78 billion will be made available for the 2023/2024 financial year, followed by R66 billion in 2024/2025, and R40 billion in 2025/2026.

These funds are classified as “direct charges” against the National Revenue Fund, meaning they are designated expenses that will be drawn directly from the country’s revenue.

Minimise load shedding intensity

Eskom’s interim CEO Calib Cassim said the relief would allow management to focus on addressing generation performance.

It would also assist in reducing unplanned outages and ultimately decreasing the intensity and frequency of load shedding.

“It allows the management team to focus on dealing with the pressing issue of generation and generation’s performance, reducing unplanned outages to reduce the intensity and frequency of load shedding,” Cassim said.

Eskom cannot end load shedding alone

Minister of Public Enterprises Pravin Gordhan emphasised that Eskom cannot singlehandedly end power cuts, as energy security is not solely the utility’s responsibility.

“In a sense, there’s a shared responsibility. Energy security is not going to come only from Eskom.”

The debt relief plan includes several conditions, including Eskom not being permitted to make salary changes which could have a detrimental impact on its overall financial situation.

Meanwhile, Mineral Resources and Energy Minister Gwede Mantashe believes emergency power procurement through Karpowership, along with other measures, could end load shedding by the end of the year if taken “seriously”.

Gwede Mantashe on Karpowership

Speaking to 702’s Clement Manyathela earlier today, Mantashe said, “load shedding can be attended to effectively and be reduced, almost eliminated, if we focus on the right things”.

Mantashe said Eskom should not pretend to have electricity when it doesn’t, stating load shedding can be effectively addressed by focusing on the right measures.

Despite the challenges Karpowership has faced, Mantashe insists that the 20-year timeframe for the emergency procurement deal is necessary to lower the cost of procuring power from the company.

Moreover, he argued against private companies taking over and delaying the decommissioning of some coal power stations, saying the government should retain its stations and invest more in them.

READ: Stage 6 returns: Load shedding escalates as 7 units go offline