Opposition parties irate at Eskom’s BHP Billiton deal

Business Day Live 12 September 2012.

OPPOSITION parties on Tuesday criticised a deal between Eskom and BHP Billiton, which owns the aluminium smelter in Richards Bay, that allows the group to pay a fraction of what the rest of the country is charged for electricity.

BHP and Eskom concluded a deal on electricity prices in the 1990s. There have been several attempts, including court action by Media 24, to uncover the terms of the agreement…

“The information I have now is that (BHP) Billiton is paying 8.8c/kWh-10c/kWh while we are paying 120c/kWh as the aluminium price is at an all-time low,” he said…