Publications
Partners
Cape Town - Hedging losses and the "risks of derivative instruments" on the balance sheet are becoming an mounting problem for parastatals like Eskom, Portia Molefe, director-general of public enterprises, told parliament on Wednesday.
She also warned that these losses, together with the funding costs of large infrastructure projects and shrinking revenue because of declining energy consumption could lead to significant rises in electricity tariffs.
"The costs will filter through to tariffs. We have little choice in that regard," she informed the public enterprises portfolio committee.
The National Energy Regulator of South Africa will soon decide on Eskom's tariff structure for the next three years.
Electricity consumption has already declined by 7.4% since March last year.
The approved five-year R385bn capital expenditure programme will proceed, however, "because large consumers have indicated they may need more power relatively quickly," Molefe said.
Deputy director-general Chris Forlee commented that new power stations were required to boost Eskom's reserve generation capacity from less than 10% to 15% or more.
Government guarantees for loans of R176bn to Eskom were made available in the recent budget because the weakening market circumstances would otherwise make capital expensive and inaccessible.
- Sake24.com
For more business news in Afrikaans, go to Sake24.
