The demand for electricity is declining, Eskom finance director Paul O’Flaherty said on Tuesday.<\/p>\n
“We were predicting that sales would go down,” said<\/p>\n
Releasing its interim results in Johannesburg, Eskom posted electricity sales of 110,766 Gigawatt Hours (Gwh) for the six months to 30 September 2012.<\/p>\n
For the same period one year ago, sales of electricity reached 114,043Gwh.<\/p>\n
Electricity sales are subject to seasonal fluctuations and Eskom made most of its profit in the first half of its financial year.<\/p>\n
CEO Brian Dames said electricity sales had also declined during the 2008 recession, and in the late 1990s.<\/p>\n
“We have seen some changes in customer behaviour. It is very important to have a plan and implement the plan,” he said.<\/p>\n
Meanwhile, Eskom’s costs were increasing.<\/p>\n
Primary energy costs increased by 14.3 percent to reach R25 billion for the six months, compared to R21.9 billion for the previous period.<\/p>\n
Operating expenditure rose by 24.1 percent, reaching R26.9 billion from R21.7 billion previously.<\/p>\n
Profit for the second half of the year would be much lower than the R21.6 billion posted for the first half, said Dames.<\/p>\n
Because repairs and maintenance were scheduled for the second half, full year profit could be below that of the first half.<\/p>\n
“If we break even for the second half, I think it will be a good performance,” he said.<\/p>\n
Eskom had secured 80 percent of the funding it needed for its R300 billion expansion programme, with Medupi’s first unit to come online by the end of next year.<\/p>\n
Dames also announced O’Flaherty had resigned.<\/p>\n
He would leave the company after the next annual general meeting, in July next year.<\/p>\n
Eskom price hike unavoidable: Gigaba<\/a><\/strong><\/p>\n Eskom price hike application \u201cnecessary\u201d \u2013 Gigaba<\/a><\/strong><\/p>\n