Brain Dames addresses the media and staff at the results presentation in Sunninghill. Pic Martin Rhodes © Business Day
Eskom said on Monday it had more than doubled its full-year profit owing to higher tariffs and would meet power demand during the peak winter period, despite tight supplies.
The power utility reported a R8,4bn net profit, up from last year’s R3,6bn. Revenue was up 28,6% from R71,1bn to R91,4bn.
Eskom said the growth in revenue was mainly because of 24,8% tariff increase that National Energy Regulator of SA (Nersa) granted Eskom in the past financial year. “(Nersa’s) decision to grant tariff increases that move towards cost-reflective levels has contributed significantly to this financial improvement, as did the return to growth in the broader economy,” Eskom CE Brian Dames said.
Electricity sales increased by 2,7% from the previous 218 591 GWh to 224 446 GWh. Eskom attributed the increase in sales to improved economic conditions. Loss on embedded derivatives for the year was R1,3bn, down from the previous R2,3bn.