Eskom increases revenue, reinvests profit

2011-06-27 12:48

Power utility Eskom increased its revenue by 29% for its financial year ending March this year, driven primarily through the tariff increase it imposed the year before.

The group’s revenue was R91.4 billion, up from the previous year’s R71.1 billion.

“Revenue growth was driven primarily by the 24.8% tariff increase granted by Nersa [National Energy Regulator of SA] effective from 1 April 2010,” according to a booklet on the results released today in Joburg.

The group’s net profit increased from R3.6 billion to R8.4 billion.

All of this money would be reinvested in the business to fund Eskom’s capital expansion plan.

At March 31, Eskom had a net maximum capacity of 41 194 megwatts.

It has committed to building another 17.1 gigawatts of new generation capacity by 2018. Of this, 5.2 gigawatts had been commissioned by March 31.

Chief executive Brian Dames said the state-owned entity had posted “a second consecutive year of strong financial performances”.

“With government’s guarantees and explicit support, Eskom has put a funding plan in place for the next seven years from 1 April 2010.”

Two years ago Eskom reported a R9 billion loss.

Eskom provides around 95% of South Africa’s electricity and more than 40% of Africa’s power.

It has held a moratorium on paying dividends since 2008 due to its capacity expansion programme.

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