State-owned electricity producer Eskom’s debt-servicing costs are set to surge to a whopping R84-billion in 2019/20, from a record R69-billion last year, amid a R441-billion-and-rising debt burden, declining sales and increasing costs. At R31-billion, the utility’s earnings before interest, tax, depreciation and amortisation (Ebitda) fell well short of its 2018/19 debt-servicing costs and the trend will persist in 2019/20, with Eskom forecasting only a modest rise in Ebitda to R34-billion on the back of tariff increases.
