Economics
Eskom Cursed With No Good Choices as It Struggles to Survive
- South African utility risks losing customers as prices climb
- Utility says electricity costs have been kept artificially low
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Hemorrhaging cash and drowning in debt, South Africa’s state power utility is trying to persuade the energy regulator to allow it to raise its prices to offset lower-than expected sales and unforeseen expenses.
The National Energy Regulator of South Africa is due to decide next month whether to grant Eskom Holdings SOC Ltd.’s request to allow it a supplementary tariff increase that would generate an additional 27 billion rand ($1.8 billion) in revenue. That may give it a temporary financial reprieve, but could also hasten a client exodus as deregulation opens the door to more independent renewable-power producers.