Eskom to Raise South African Power Prices Less Than Sought
- Producer’s struggling to meet expenses, received state bailout
- Increase permitted is 13.8% when prior cost recovery added
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South Africa’s energy regulator allowed the state-owned power utility to raise prices by less than what the embattled company estimates it needs, keeping pressure on its balance sheet while also adding to inflation strains.
Eskom Holdings SOC Ltd., which Goldman Sachs Group Inc. calls the biggest single threat to South Africa’s economy, is surviving on government guarantees after cost overruns and delays in building new plants left it with ballooning debt. A lack of maintenance on aging plants has led to rolling power cuts that damp economic growth and forced the state to pledge a bailout to help save the company.