S&P’s says Eskom will need another R50bn injection to close funding gap

Engineering News – ONLINE

14 October 2013

Ratings agency Standard & Poor’s (S&P’s) has downgraded Eskom’s standalone credit profile (SACP) to ‘b-‘ from ‘b’ and has indicated that it believes the utility will require additional funding of about R50-billion to close a gap that arose as a result of the National Energy Regulator of South Africa’s (Nersa’s) latest tariff determination.

On February 28, Nersa granted Eskom yearly increases of 8% for the third multiyear price determination (MYPD3) period from 2013/14 to 2017/18, instead of the 16% requested. This translated into allowable revenue for the period of R862-billion, rather than the nearly R1.1-trillion sought.  Read more

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