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South Africa's Eskom reports $3 billion loss on transmission system split

South African utility Eskom on Thursday reported a higher fullyear loss of 55.0 billion rand ($ 3 billion) since of a oneoff charge linked to the separation of its transmission system, but it anticipated a. revenue for the fiscal year ending March 2025.

State-owned Eskom is being split into three business that. will individually manage electrical energy generation, transmission and. circulation, as part of a reform plan revealed by President. Cyril Ramaphosa in 2019 to make the energy more efficient.

The business made a loss after tax of 26.1 billion rand in. the year to the end of March 2023.

Eskom blamed bad efficiency of its coal-fired power. station fleet, a lack of cost-reflective tariffs, intensifying. local arrears, and unsustainable financial obligation levels among factors. for its latest loss.

Earnings in the year to end-March 2024 increased 14% to 295.8. billion rand, a presentation on the business's website showed. Sales volumes dipped 3% to 183.3 terawatt hours, as the company. executed scheduled power cuts on 329 days throughout the year.

Eskom's power cuts, known locally as load-shedding, have. curbed economic development in Africa's a lot of industrialised country. for more than a years.

But a remarkable turn-around in Eskom's electricity supply this. year has actually seen South Africa go without power cuts for about nine. months, boosting business self-confidence and resulting in optimism. that financial growth levels could increase.

Eskom projection on Thursday a profit after tax of more than. 10 billion rand for the 12 months to end-March 2025.

(source: Reuters)