POWER PURCHASES
Eskom seeks balance-sheet aid from the Treasury
Eskom has approached the Treasury for a form of "soft support" to give it the balance sheet capacity to sign power purchase agreements with independent power producers (IPPs). This is pending the outcome of its application to the National Energy Regulator of SA (Nersa) for a tariff adjustment under the revenue-clearing account that, if approved, will come through only next year. The application to the Treasury is just one of many applications for support from state-owned entities at a time when the Treasury is forecasting lower growth, lower revenues and less money in the state coffers. South African Airways (SAA), SA Express and the SABC are among the entities needing an injection of state funds. The Department of Energy’s deputy director-general for policy planning, Ompi Aphane, said in Parliament on Tuesday that the aim with support for Eskom under the government support framework agreement would be to bolster the utility’s balance sheet and allow it to proceed with signing the a...
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