Power supplier Eskom in South Africa said on Friday that its profits for the first half of the year had decreased by almost two-thirds owing to frequent power outages and poor plant performance.
Debt-saddled Eskom has struggled for years to keep up with the nation’s electricity demand, resulting in hours of blackouts that have damaged industrial productivity and hurt residences in the most industrialized economy in Africa.
Over the six-month period ending on September 30, the utility’s profits decreased from $10.61 billion rand ($216.5 million) to $3.84 billion rand.
Due to rising demand, Eskom has begun shutting down electrical facilities throughout the winter months of June through August. It thus loses clients and money.
The government declared that it would take about $47 billion of Eskom’s approximately $57 billion debt on September 30.
Eskom predicted that it will need 60 billion rands to operate in 2023 and has already received 75 billion rands. The remaining 20 billion rands are to be financed via a private sale of shares.
For the fiscal year beginning April 1, South Africa’s energy regulator has permitted a price rise of 18.65 percent.
Eskom said that it will be able to restore energy availability at its fleet of power plants. This is as a result of the increases in rates and steps to reduce debt.
