Eskom faced with tight financial position if tariff hike is dismissed
Eskom has applied for a 16.6 percent tariff increase to recoup R22.8 billion.
CAPE TOWN - Eskom says it will be in a tight financial position if the National Energy Regulator of South Africa (Nersa) doesn't approve a tariff hike for this year.
Public hearings commenced earlier this week in Cape Town, Port Elizabeth and Durban into Eskom's application for a 16.6 percent tariff increase to recoup R22.8 billion.
The hearings will end in Johannesburg next month before Nersa makes a decision about whether it will approve the hike.
Eskom's Khulu Phasiwe said, "We are hopeful that the regulator will rule in our favour; but if it happens that we don't get any of the money we are trying to recoup then obviously it will put us in a very tight financial situation. Remember, this R22 billion… part of it came from the loans that we secured with some of our funders."
(Eskom by Winnie Theletsane)