Billiton contract costs Eskom R5.5bn

Business Report 19 September 2012.

The loss to Eskom of its specialised pricing arrangement with aluminium producer BHP Billiton (BIL) over the life of the contract and on a range of assumptions such as the estimated future electricity price was R5.5bn‚ Eskom’s financial director Paul O’Flaherty told Parliament’s public enterprises committee on Tuesday.

Eskom CEO Brian Dames described the agreement as “undesirable” and said the utility was working hard to renegotiate it. – I-Net Bridge