Eskom gets R17.7bn of planned support

Eskom has received R17.7bn of planned financial support from the country’s National Treasury, according to Public Enterprises Minister Pravin Gordhan.

The transfer, which is part of a R23bn of support pledged by the government for its current fiscal year, was approved by Finance Minister Tito Mboweni on April 2, Gordhan said in a text message.

Eskom is saddled with R419bn of debt and isn’t selling enough power to cover its interest payments and operating costs, a legacy of years of mismanagement and cost overruns on new plants.

The government said in February that it will support the state-owned utility with a R69bn cash injection over the next three years.

Johannesburg-based Eskom needed the funds to be transferred as quickly as possible to ensure its financial stability, Public Enterprises spokesman Adrian Lackay said by phone from the city.