Eskom paid Exxaro R9.7 billion in penalties on Medupi coal contract

The Medupi energy station close to Lephalale in Limpopo. Photograph: Gallo Photos

Eskom, which is struggling to search out money to maintain its turbines working, paid billions of rand in penalties on a coal contract at one in every of its latest vegetation.The funds on Eskom’s take-or-pay contract on the Medupi plant for the dirtiest fossil gasoline reached R9.7 billion in November, the corporate informed parliament’s Standing Committee on Public Accounts on Tuesday. The utility’s earlier makes an attempt to renegotiate the contract with Exxaro have been rejected by the mining firm.A coal stockpile on the website stood at 17.6 million tons on the finish of November, the utility mentioned. “Eskom will, thus, incur additional take-or-pay penalties if Medupi Energy Station can’t burn the minimal contractual volumes.”


Each day

SA Cash Each day
The largest enterprise, financial and market information of the day.


A spokesman for Exxaro declined to remark. Medupi and Kusile are the latest coal-fired services owned by Eskom, however delays and defects on the vegetation have stifled their practically 9 600 megawatts of mixed capability, leaving the nation extra weak to energy outages.Eskom additionally reported that negotiations for Kusile’s coal provide with Seriti Assets are advancing and the events agreed to a three-year provide deal as they work on a decade-long contract. The corporate didn’t instantly reply to emailed questions.  

We stay in a world the place information and fiction get blurred
In instances of uncertainty you want journalism you possibly can belief. For 14 free days, you possibly can have entry to a world of in-depth analyses, investigative journalism, prime opinions and a variety of options. Journalism strengthens democracy. Make investments sooner or later right this moment. Thereafter you can be billed R75 monthly. You may cancel anytime and if you happen to cancel inside 14 days you will not be billed.