Eskom has dragged its regulator‚ Nersa‚ to court over its tariff decision and is toughing it out against employees with a wage freeze‚ despite the growing prospect of a strike. Nersa granted Eskom a 5.23% tariff increase for 2018/19‚ against the 19.9% that Eskom had applied for.
Businesses and the public opposed the increase that Eskom wanted‚ following the increases in tariffs of about 25% a year that Eskom was allowed five years ago when its financial position became critical.
Eskom ran out of cash late in 2017 after lenders turned off the taps due to state capture and corruption allegations.
The situation at the company remains dire‚ even though a turnaround strategy is on the cards.
The company has a huge debt burden of R350-billion‚ increasing by about R70-billion a year.