Eskom pleads for tariff hikes and state bailout to avert disaster
An immediate financial crisis looms as banks stop lending
Eskom CEO Phakamani Hadebe on Monday made a desperate plea for three years of substantial tariff hikes and a massive government bailout, which he said was necessary to pull the power utility back from the debt cliff and avert disaster.
Hadebe was addressing hearings held by the National Energy Regulator of SA (Nersa) to query Eskom’s application for a 15% tariff increase beginning in 2019/2020, which would result in a total increase of 52% over the three-year period, significantly above the Reserve Bank’s inflation target of 3%-6%.
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