This is part of the accelerated assistance to Eskom announced after last year’s budget, after initially announcing in the 2019 budget that Eskom would receive R23bn a year over the next ten years.
Treasury calculates load shedding has already cost the economy about 0.1% of GDP in the fourth quarter of last year and if no action is taken, the impact of power cuts on economic growth could be even worse this year.
According to the Treasury, the R49 billion that Eskom has already received in the past financial year and the R56 billion it receives in the coming financial year are conditional on accountability and efficiency. The conditions include that Eskom improves its primary energy costs – including coal and diesel costs – and advances its restructuring into three separate operating entities.
The government over the past 12 years has thrown R162 billion lifebuoys into struggling state enterprises, with Eskom gaining 82% of that, the budget review shows.