S. Africa's Eskom Can Recover $2.5 Billion From Power Users
(Bloomberg) -- South Africa’s energy regulator will allow the country’s power utility to recover 32.7 billion rand ($2.5 billion) in unbudgeted costs from electricity users for the past three years.
Eskom Holdings SOC Ltd. had asked the National Energy Regulator for permission to claw back 66.6 billion rand of expenses incurred from 2014 to 2017.
The regulator will plot a plan on how Eskom will recover the costs by Sept. 30, it said in a statement handed to reporters Thursday in the capital, Pretoria.
The utility is facing financial strain as a result of factors including weak demand, delinquent municipalities that don’t pay their bills and widespread allegations of corruption. Eskom earlier this year took an initial step to sell its mortgage unit, a non-core asset, to try help stabilize the company.
Eskom will provide a detailed comment on the decision after the regulator has published its reasons, the company said in a statement.
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