Hikes alone won’t guarantee Eskom’s viability, warns AGSA as it releases alarming audit findings

On the eve of the highly-anticipated announcement of Eskom’s tariffs for the coming three years, the Auditor-General South Africa (AGSA) has warned that tariff increases will fail to improve the State-owned company’s financial viability unless they are accompanied by dramatic improvements to revenue management and controls. It also warns of unintended consequences for municipal indebtedness and illegal connections, given growing affordability concerns.