Cash-strapped Eskom asks for R19,5 billion to buy diesel from national treasury
South African power utility Eskom continues to struggle to raise funds as it needs R19,5 billion from the government. BusinessTech Africa is informed that the struggling power supplier, Eskom has requested R19,5 billion from the National Treasury to buy diesel to fuel auxiliary power plants – a request that’s unlikely to be heeded, said Finance
Cash-strapped Eskom asks for R19,5 billion to buy diesel from national treasury
South African power utility Eskom continues to struggle to raise funds as it needs R19,5 billion from the government.
BusinessTech Africa is informed that the struggling power supplier, Eskom has requested R19,5 billion from the National Treasury to buy diesel to fuel auxiliary power plants – a request that’s unlikely to be heeded, said Finance Minister Enoch Godongwana.
However, it is reported that Minister Godongwana said the country doesn’t have that kind of money and that Eskom has to find the money elsewhere.
“We don’t have it,” Godongwana said in an interview at Bloomberg’s office in Johannesburg.
Africa’s most-industrialised economy has been subjected to record power outages this year, mainly due to breakdowns at Eskom’s poorly maintained coal-fired plants that account for over 80% of South Africa’s power supply.
“Due to the depletion of the budget to acquire diesel for the open cycle gas turbines, Eskom has been forced to strictly conserve the fuel for the direst of emergencies,” it said in a statement Friday.
“Due to the depletion of the budget to acquire diesel for the open cycle gas turbines, Eskom has been forced to strictly conserve the fuel for the direst of emergencies,” it said in a statement Friday.
“As previously communicated, due to the depletion of the budget to acquire diesel for the Open Cycle Gas Turbines, Eskom has been forced to strictly conserve the fuel for the direst of emergencies.””
Eskom has spent R11 billion rand on the fuel in the 10 months through October and warned last month that electricity outages may intensify if it runs out of funds to buy the fuel. The state-owned company has imposed 176 days of rolling blackouts so far in 2022, according to Bloomberg calculations.
The utility has since negotiated a deal with state oil company PetroSA for diesel, which should be sufficient to cover its requirements for the fuel through the financial year ending March 2023, Godongwana said.
It warned the power cuts may “significantly increase” in the next six to 12 months as planned maintenance and breakdowns reduce generation capacity.
