High municipal debt, declining sales: Is Eskom’s profitability built on struggling South Africans?
” Disaster waiting to happen Saba added the power utility needs to avoid a cycle in which higher tariffs reduce electricity demand, declining demand then weakens Eskom’s revenue base, and further tariff increases become necessary to compensate for falling sales.
Eskom should increasingly generate financial improvements through efficiency, stronger electricity demand, lower operating costs and expanded economic activity rather than primarily through higher tariffs.
Municipal debt increased to nearly R120 billion, and electricity sales volumes fell by 6.
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