Read also: Eskom faces more dark days as profits dwindle
Eskom, which has been facing acute financial issues and continues to operate at a loss, released a statement towards the end of 2020 saying, "In order to improve our financial position in the longer term, we require a considerable reduction in the debt profile or a sizable increase in cash flows through cost-reflective tariffs."
Eskom CEO André de Ruyter also said that the state-owned entity would sell 7,000 of its non-core properties – valued at nearly R10bn – over the next five years in an attempt to address some of its financial instability.
"The power utility's top priority remains to address operational and financial challenges and return to financial sustainability," De Ruyter said. The business will also be turned into three separate units to add outside power producers, and will eventually move away from coal as its main fuel.
The community outlook isn't particularly positive, though.