Eskom postponed projects worth R7-billion this year as it battles to raise funds for its expansion programme, Business Day reported the utility as saying.
Eskom has been struggling to pay for its R385-billion expansion programme and its inability to raise sufficient funds has raised worries whether the utility would be able to supply enough power to Africa’s biggest economy and a major producer of platinum and gold.
Chief executive Jacob Maroga told the paper that despite the tight credit markets Eskom would be able to cover the remaining funding shortfall for this year and its three major projects — two coal-fired power stations and a hydro plant due between 2013 and 2017 — would remain on track.
Eskom, which provides 95% of the country’s power, was granted a 31,3% increase in electricity tariffs in June and the utility said it would rely on further hikes, equity and borrowings to raise the funds for expansion.
The utility’s funding shortfall is expected to increase further next year and it is yet unclear how Eskom will cover it, although further hikes in tariffs of up to 60% are anticipated. — Reuters