Treasury support for Eskom will come to R230bn over a decade – Mboweni
National Treasury's cash injections to Eskom to the tune of R23-billion a year to help it cover its debt are likely to continue for a decade, Finance Minister Tito Mboweni told MPs on Thursday.
"It will be for ten years, so R230-billion. I think in the book we put R69-billion," Mboweni said in a briefing to Parliament's finance committees the day after he tabled the 2019 national budget.
In his budget speech, the minister announced that the ailing power utility would get R23-billion a year for the next three years.
National Treasury's acting deputy director general for the budget office, Ian Stuart, said officials had arrived at a decision that Eskom would require R150-billion in support to its balance sheet, and if that figure were amorticised over ten years in resulted in annual payments of R23-billion.
Stuart added that the calculations on support to the struggling power utility had been difficult because of the variables involved, including tariff increases and fluctuations in electricity demand.
He suggested that the picture may change in the outer years but said the treasury decided that it had to provide figures in the budget to satisfy international ratings agencies' preference for maximum transparency.
"There are a lot of people working on this, looking at the numbers.... In a sense a lot of this work still needs to be done, but we had a major decision to make in putting together the budget.... we decided we must be as transparent as possible."
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...
VISIT SHOWROOM
M and J Mining are leading suppliers of physical support systems as used by the underground mining industry. Our selection of products are not...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
