Eskom gets more time for fee hike, secures R20 billion loan

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The National Energy Regulator of South Africa has approved Eskom’s application for an extension to submit the new Multi-Year Price Determination (MYPD)

Eskom now has until April 1st next year to make sure its documentation is in order before applying for another electricity fee increase.

In March this year, Nersa granted Eskom a 9.4% hike in the electricity price that it applied for late last year for the 2016/17 tariff period. Eskom at the time was also told that it has to submit a new application within the next three months, based “on revised assumptions and forecasts that reflect recent circumstances.”

It is that three-month period that has now been extended to April next year.

According to Nersa, Eskom “cited statutory consultation requirements and the revision of the MYPD Methodology as reasons for the request.”

The news comes on the same day that the electricity suppliers has been granted almost R20 billion in loans from the African Development Bank (AfDB).

The funds will reportedly be used in various expansion programmes, like Medupi and Kusile.

According to Fin24, the loan will be broken down into several parts: a R5.36bn un-guaranteed senior unsecured loan, and a R246m guaranteed A-loan, among others.

“We are particularly grateful for the continued support in a time when Eskom has made major advancements in achieving operational and financial sustainability and expediently completing the build programme,”said Eskom CEO Brian Molefe. “These facilities are a demonstration of the Bank’s mandate to contribute to the economic development and social progress of African countries.”

The announcement also came a day after the utility giant announced its financial results for the year ending 31 March, which revealed that the parastatal has made R4.6 billion in profit over the last year.

[Image – CC by 2.0/Sarah Macmillan]

Charlie Fripp

Charlie Fripp

Charlie started his professional life as a motoring journalist for a community newspaper in Mpumalanga, Charlie explored different journalistic angles since his entry into the fast-paced world of publishing in 2006. While fostering a passion for the arts, Charlie developed a love for technology – both which allowed him to serve as Entertainment and Technology Editor for an online publication. Charlie has since been heavily involved in consumer technology for various websites and publications. He thoroughly enjoys World War II films and cerebral documentaries; aviation; photography and indie music. Oh yes, and he also has a rather strange obsession with collecting coffee mugs from his travels.