Latest news with #TimothyBarnard
IOL News
04-07-2025
- Business
- IOL News
Eskom cracks down on fraudulent electricity tokens with new security upgrades
Eskom intensifies efforts to secure its prepaid electricity token system following the OVS breach, aiming to restore public trust and strengthen operational resilience. Image: Timothy Barnard /Independent Newspapers Eskom has announced decisive new actions to protect its customers following a major breach of its Online Vending System (OVS), which was exploited to generate and distribute fraudulent prepaid electricity tokens. The breach, revealed in Eskom's full-year 2024 financial results released in December, exposed critical weaknesses in both the physical and cybersecurity layers of the utility's infrastructure. The fraudulent activity, which threatened to undermine public trust in Eskom's prepaid electricity system, prompted an immediate and robust response from the state-owned utility. 'We uncovered weaknesses in physical and cybersecurity components on our OVS system,' said Monde Bala, Eskom's Group Executive for Distribution. Eskom has since launched a comprehensive review and intervention strategy to address these security gaps and strengthen its operations against future threats. 'Earlier this year, Eskom successfully strengthened the protection of its current systems against potential threats. All system enhancements are managed through a robust Change Management process that spans all divisions, ensuring consistent oversight and control,' explained Len De Villiers, Eskom's Chief Technology and Information Officer. To address the vulnerabilities that allowed the token fraud to occur, Eskom has reinforced its physical infrastructure and limited both physical and digital access points. Eskom has also strengthened internal controls to combat electricity theft and enhanced monitoring capabilities to ensure greater transparency and timely detection of suspicious activities. In parallel, Eskom has been working closely with law enforcement agencies to support ongoing investigations and ensure accountability. As part of this effort, internal employees who have been implicated have been placed on precautionary suspension pending further review. Furthermore, Eskom has engaged an external IT firm to strengthen in-house capabilities and improve risk management. The utility has also fast-tracked the acquisition of a new, secure vending system designed to replace the compromised OVS and prevent similar incidents in the future. Throughout this process, Eskom has maintained regular reporting to its board, which continues to provide oversight of all remediation efforts. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading 'We are fully aware of the challenges that have emerged within the OVS environment, and we have taken clear steps to address them. Our focus is on restoring trust, strengthening our systems, and ensuring that our customers can rely on a secure and efficient service," said Eskom's Group Chief Executive, Dan Marokane. "This is not just a technical fix, it is part of a broader commitment to transparency, operational excellence and accountability.' While the investigation into the token fraud continues, Eskom has pledged to share the findings once the process is concluded and the appropriate time for disclosure has been determined. In the meantime, the utility has called on customers and stakeholders to remain vigilant and report any suspicious activity related to prepaid electricity tokens. As Eskom moves forward with its efforts to protect its infrastructure and rebuild public confidence, it reassures South Africans that their electricity, and their trust, remain top priorities. IOL
IOL News
11-06-2025
- Business
- IOL News
Most municipalities flouting Eskom debt relief terms, warns utility
Embattled power utility Eskom has revealed that 87% of municipalities approved for National Treasury's municipal debt relief program are failing to meet the conditions required for debt write-offs Image: Timothy Barnard /Independent Newspapers Embattled power utility Eskom has revealed that 87% of municipalities approved for National Treasury's municipal debt relief program are failing to meet the conditions required for debt write-offs, with only 10 out of 71 municipalities remaining compliant. The municipal debt relief program was introduced by National Treasury in 2023 to help municipalities reduce the large debts they owe Eskom. It offers debt write-offs if municipalities pay their current bills consistently and meet certain conditions. Despite measures like reducing interest and payment plans, Eskom says municipal debt has kept growing and now stands at about R94.6 billion and warned that ongoing non-compliance poses a significant risk to its liquidity and overall operations. The state-owned power utility made these disclosures while briefing Parliament's Standing Committee on Appropriations on its finances on Tuesday. "So this covers the national debt relief program. So just in summary, 71 municipalities, were approved. And right now, we are only sitting with 10 compliant, municipalities,". Rajen Naidoo, Eskom's General Manager for Finance said. "The sad situation that we find ourselves in is that even municipalities that were approved did not even honour their current bill, some of them from month one of the program. So it's it it's only these 10, municipalities if they are compliant, in terms of how the program works,". Eskom CFO Calib Cassim emphasised that the purpose of the Eskom Debt Relief Amendment Bill was to place power utility on a sustainable financial footing, reducing the need for future bailouts from the National Treasury. Committee Chairperson Mmusi Maimane stressed that Eskom plays an important role and that its money problems and the growing municipal debt are key issues for the committee when deciding on funding.
IOL News
11-06-2025
- Business
- IOL News
Most municipalities flouting Eskom debt relief terms, warns utility
Embattled power utility Eskom has revealed that 87% of municipalities approved for National Treasury's municipal debt relief program are failing to meet the conditions required for debt write-offs Image: Timothy Barnard /Independent Newspapers Embattled power utility Eskom has revealed that 87% of municipalities approved for National Treasury's municipal debt relief program are failing to meet the conditions required for debt write-offs, with only 10 out of 71 municipalities remaining compliant. The municipal debt relief program was introduced by National Treasury in 2023 to help municipalities reduce the large debts they owe Eskom. It offers debt write-offs if municipalities pay their current bills consistently and meet certain conditions. Despite measures like reducing interest and payment plans, Eskom says municipal debt has kept growing and now stands at about R94.6 billion and warned that ongoing non-compliance poses a significant risk to its liquidity and overall operations. The state-owned power utility made these disclosures while briefing Parliament's Standing Committee on Appropriations on its finances on Tuesday. "So this covers the national debt relief program. So just in summary, 71 municipalities, were approved. And right now, we are only sitting with 10 compliant, municipalities,". Rajen Naidoo, Eskom's General Manager for Finance said. "The sad situation that we find ourselves in is that even municipalities that were approved did not even honour their current bill, some of them from month one of the program. So it's it it's only these 10, municipalities if they are compliant, in terms of how the program works,". Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Eskom CFO Calib Cassim emphasised that the purpose of the Eskom Debt Relief Amendment Bill was to place power utility on a sustainable financial footing, reducing the need for future bailouts from the National Treasury. Committee Chairperson Mmusi Maimane stressed that Eskom plays an important role and that its money problems and the growing municipal debt are key issues for the committee when deciding on funding.
IOL News
27-05-2025
- Business
- IOL News
Fitch Ratings reaffirms Eskom's credit rating with stable outlook
Fitch Ratings has reaffirmed Eskom's credit rating amid operational improvements Image: Timothy Barnard /Independent Newspapers Fitch Ratings made a significant announcement regarding Eskom Holdings SOC Ltd., reaffirming its Long-Term Local-Currency Issuer Default Rating (IDR) at 'B' and assigning a stable outlook. This decision underscores a cautious optimism surrounding the struggling power utility's financial trajectory, particularly as the energy crisis in South Africa continues to loom large. In a further sign of progress, Fitch Ratings revised Eskom's Standalone Credit Profile (SCP) to 'ccc+' from 'ccc-', indicating a notable enhancement in the operational performance of the Group. The ratings agency anticipates a material increase in earnings before interest, taxes, depreciation, and amortization (EBITDA) for Eskom during its Financial Years (FY) 2025 to FY 2029. Fitch also affirmed Eskom's senior unsecured debt at 'B', with a Recovery Rating of 'RR4', and recognised its senior unsecured guaranteed debt at 'BB-'. These projections signal potential stability ahead for the beleaguered entity. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ 'The affirmation and positive revision on our credit rating profile by Fitch reinforces our determination to continue our efforts to turnaround Eskom's financial and operational performance,' stated Dan Marokane, Eskom's Group Chief Executive. 'Our aim remains to ultimately reduce Eskom's reliance on government support by driving the company towards financial sustainability,' he said. IOL
IOL News
24-04-2025
- Business
- IOL News
ActionSA slams Eskom's R3.6 billion diesel spending in one month as 'costly cover-up' for failing grid
ActionSA demands accountability from Eskom and the Minister of Electricity, calling for honest reporting, real recovery plans, and an end to wasteful diesel spending disguised as energy progress. Image: Timothy Barnard /Independent Newspapers ActionSA has expressed concern over Eskom's R3.6 billion diesel spend in just 30 days, calling it an 'unaffordable illusion' used to mask South Africa's ongoing electricity crisis. The party says government claims of ending load shedding are misleading, with diesel-powered emergency generation simply substituting blackouts rather than solving the core issues. ActionSA Member of Parliament, Alan Beesley, said: 'South Africa hasn't ended load shedding – we've simply replaced it with an unaffordable illusion, paid for by the taxpayer.' Beesley said that between April 1 and 10, 2025, alone, Eskom burned R1.34 billion in diesel. Yet, Eskom's Energy Availability Factor (EAF), the key metric for generation performance, sits at just 56.11 percent, well below the 70 percent target set by the Minister of Electricity. This also reflects a decline from the same period last year, when the EAF was 58.96 percent. ActionSA says this proves there are fewer megawatts available now than a year ago, despite significantly higher spending. 'That is not a recovery – it is a cover-up with devastating fiscal consequences,'' Beesley warned. According to Eskom's 2024 data, diesel-fired generation via Open-Cycle Gas Turbines costs R6,579 per megawatt-hour, compared to R541 for coal and just R113 for nuclear. ActionSA argues that billions are being wasted to keep the grid afloat when those funds could have been used to restore failing coal infrastructure. If the same amount of electricity had been produced using coal, the cost would have been a fraction, closer to R300 million. Beesley added: 'Eskom is burning billions, and the people of South Africa are being burned in the process.'
