Cash & Liquidity
Bulk Purchase Cost Recovery
Recovery of Eskom and water board bulk costs through tariff revenue, net of distribution losses.
Why bulk cost recovery is measured
Electricity and water are bought in bulk from Eskom and water boards and resold to consumers, so failure to recover those bulk costs through tariff revenue is a direct, often unsustainable, drain on cash. Distribution losses, under-tariffing and poor collection all erode recovery, and the gap is a leading contributor to the Eskom debt crisis facing many municipalities. AuditPro Core measures bulk cost recovery net of distribution losses so the true margin on each trading service is visible.
The Numbers
AuditPro Core renders this view from your tenant's live, tamper-evident records. The figures below are illustrative sample data.
Bulk Cost
R 604 m
Eskom + water board
Revenue Recovered
R 528 m
87.4%
Under-Recovery
R 76 m
▲ R 18 m
Loss-Driven Gap
R 52 m
68% of shortfall
Bulk cost vs recovery by service (R m)
Cost recovery detail
| Service | Bulk Cost (R m) | Recovered (R m) | Recovery % |
|---|---|---|---|
| Electricity | 442 | 384 | 86.9 |
| Water | 162 | 144 | 88.9 |
Figures shown are illustrative sample data for demonstration. AuditPro Core renders these views from your own tenant's live, tamper-evident records.
Trading services should break even
Electricity and water are intended to be self-funding trading accounts where tariff revenue covers bulk cost plus distribution. A persistent shortfall means general funds are subsidising the service.
Distribution losses erode recovery
Units lost to theft, technical losses and faulty meters are purchased but never billed. High loss percentages make full cost recovery mathematically impossible at current tariffs.
Recovery versus the Eskom obligation
Bulk suppliers must be paid in full and on time regardless of what is collected from consumers. A recovery gap quickly becomes overdue creditor debt to Eskom or the water board.
How AuditPro Core Bridges the Gap
- Recovery computation: tariff revenue is measured against bulk cost net of distribution losses.
- Loss quantification: the gap between units purchased and billed is isolated and trended.
- Subsidy flagging: shortfalls where general funds subsidise trading services are surfaced.
- Creditor linkage: recovery gaps are tied to the bulk-supplier payable position.
Key Takeaways
- Electricity and water should be self-funding trading accounts.
- Distribution losses make full cost recovery impossible at low tariffs.
- Bulk suppliers must be paid regardless of consumer collection.
- A recovery gap converts directly into Eskom or water-board debt.
See This on Your Own Data
AuditPro Core renders this dashboard from your tenant's live, tamper-evident records — every figure traceable to source.