South Africa's Eskom Sees Wider Loss, Seeks Higher Power Tariffs

South Africa’s struggling power firm Eskom expects to make a wider 20 billion rand ($1.5 billion) loss in the current financial year and wants steeper tariff hikes than it previously sought, its chief financial officer said on Monday. The chief executive also said the government should consider injecting extra capital into state-owned Eskom to help it cope with what he said were low electricity tariffs, Reuters reported. Eskom, which previously forecast a 15 billion rand loss in the financial year ending in March, is vital to South Africa’s economy because it supplies more than 90 percent of its power but is drowning in around 420 billion rand of debt. South African President Cyril Ramaphosa is trying to turn around the ailing company and has said he will announce a plan to shore up its finances in the coming weeks. Eskom’s dollar-denominated bonds have rallied in recent days on hopes that Ramaphosa will unveil a restructuring plan soon. Read more