Johannesburg – The admission by Eskom’s CEO that it faces serious financial trouble and that load shedding will commence as from next week onwards do not bode well for South Africans and business in particular, according to Christo van der Rheede, CEO of the AHi.
"Nevertheless business commend the CEO for admitting that Eskom faces a national emergency," he said in a statement.
"A bigger worry, though, is the fear of unforeseen incidents that might cause the entire system to collapse. Eskom’s diesel budget is also very limited and it pins it hopes on government to assist."
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The AHi wants Eskom to provide a detailed finance plan to government, outlining how it will manage its cash flow.
However, many municipalities are not paying their bills and according to Van der Rheede municipal debt bedevils Eskom’s financial sustainability as some municipalities are "completely dysfunctional".
Eskom’s liquidity position is also heading for a significant decline in profit due to rising costs and it’s reserves, valued at R20bn, are under severe pressure, according to the AHi.
"Megaprojects are delayed, but Eskom is very close to synchronising Medupi unit 6, with Kusile to follow by the end of year. Erratic power will flow to the grid before full power is achieved during the first half of 2015," said Van der Rheede.
"System constraints will heightened from January 2015, with load shedding as from next week onwards."
The AHi encourages businesses to prepare themselves for a rough ride and to rather invest in their own power supply.