• Labour Wrap

    Terry Bell says the labour movement in SA is currently in a state of confusion.

  • Will the NPA stand up?

    Solly Moeng wonders if the NPA head will reinstate criminal charges against president Zuma.

  • Commodity currency

    Jac Laubscher asks if the true exchange rate of the rand is really a cue from commodity prices.

All data is delayed
Loading...
See More

Eskom: Moody's view won't hurt rating

Mar 19 2012 12:54
Fin24 & I-Net Bridge
Johannesburg - Power utility Eskom said on Monday that a comment by ratings agency Moody's will not affect its rating.

On Monday Moody's described a drastic reduction in the tariff increase granted to Eskom recently by the National Energy Regulator of SA (Nersa) as "credit negative for Eskom".

Nersa has allowed Eskom a 16% average hike for 2012/13 instead of the 25.9% it originally granted in 2010.

Eskom said that Moody's comment did "highlight the need for electricity prices to continue moving up towards cost-reflective levels".

The utility said its financial position has improved but it needs certainty on a longer-term price path for electricity.

"This will ensure that Eskom, and the electricity industry, are financially viable and sustainable," said Eskom chief executive Brian Dames.

Dames and finance director Paul O'Flaherty visited credit rating agencies in London last week together with Deputy Public Enterprises Minister Benedict Martens to explain the reduction in the tariff increase.
nersa  |  tariff increases  |  moody's  |  eskom

NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.
 

Company Snapshot

We're talking about:

SMALL BUSINESS

Marketing is a big concern in SA's small business community, followed by a lack of confidence and partnering with the wrong people, according to a survey.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The drop in inflation:

Previous results · Suggest a vote

Loading...