Eskom to Fight Energy Regulator In Court, Mining Weekly Says
Eskom to Fight Energy Regulator In Court, Mining Weekly Says
(Bloomberg) -- Eskom Holdings SOC Ltd. is challenging the South African energy regulator in court over a tariff increase the state-owned utility says isn’t sufficient, Mining Weekly reports, citing court papers.
The debt-laden company is asking a High Court to review a price increase awarded by the National Energy Regulator of South Africa which Eskom says doesn’t consider the cost of generating electricity, the website says. The utility will argue that delays in processing so-called regulatory clearing accounts during the past three tariff applications played a role in worsening its liquidity position.
Eskom was granted an electricity price increase of 9.4% in April, less than the 17% it has requested. The utility will raise tariffs by 8.1% next year and 5.2% the one after.
Read more: Extra Bailout Won’t End Eskom’s Challenges, Moody’s Says
To contact the reporter on this story: Felix Njini in Johannesburg at fnjini@bloomberg.net
To contact the editors responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net, John Bowker
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