Eskom supplies electricity at a loss to Australian group
Hillside has power utility locked into an agreement that gives it electricity five times cheaper than that paid by others
Once again the power supply agreements between Eskom and the Hillside aluminium smelters in Richards Bay, owned by Australian company South32, are set to hog the headlines. For more than 10 years these contracts have intrigued the public, media and courts as they were kept secret from the public for many years and were hugely unprofitable for Eskom and the public.
The first of the two contracts (for Hillside potlines 1 and 2) ends on June 30, and South32 is working hard to have this highly favourable arrangement (for them) extended. The contact started in July 1995, and is unusual due to its duration and size: it entails the sale of about 900 MW a month for the two potlines, the equivalent of 3% of Eskom’s capacity...
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