Eskom wants to hike coal prices in defiance of Treasury

[Jamie McKane]

Eskom wants to hike coal prices in defiance of Treasury

Eskom wants to increase the price it pays for coal delivered by South32 to its Duvha power station despite the National Treasury opposing the idea.

This is according to a report by The Sunday Times, which cited sources with knowledge of the transaction.

 

[Mekon]

Like a cancer riddled human dying a slow death. This is what this country has become. cANCer

 

[GMAN03]

I thought South32 had sold their coal business in SA to Seriti

 

[Quintrix]

The article does not explain Eskom's reasons why they want to defy treasury. It gives the impression they doing it just because they can but also leaves the idea that there is some digging to be done.

 

[quovadis]

Why Eskom can’t stipulate a price of coal including delivery is astounding. Paying more because they have a more efficient delivery method is flawed logic.

 

[cr@zydude]

I thought South32 had sold their coal business in SA to Seriti

Is in the process of selling. They wanted higher Eskom rates as part of the sales agreement.

 

[R13...]

I thought South32 had sold their coal business in SA to Seriti

The deal is only supposed to be concluded early this year.

 

[ProfA]

de Ruyter is doing his best guys

 

[system32]

Now I understand this week's load shedding, Eskom wants an increase. Happens every time.

 

[WalkWithMe]

What is the TCO (Total Cost of Operation). If it lowers the the total cost and/or increases effectiveness then go for it.

 

[Milano]

What is the TCO (Total Cost of Operation). If it lowers the the total cost and/or increases effectiveness then go for it.

Umm..yes sure.

 

[Sinbad]

What the ****?

Since when does a buyer want to pay more?


Dear sabc, we'd like to increase our TV license payment this year.
Dear minister of energy, we think petrol should go up R5 a litre next month


The mind boggles.

 

[Gazg]

What the ****?

Since when does a buyer want to pay more?


Dear sabc, we'd like to increase our TV license payment this year.
Dear minister of energy, we think petrol should go up R5 a litre next month


The mind boggles.

Exactly.......is the seller not wanting to charge more, but De Ruyter says that dispite the price increase, it still remains more cost effective than trucking from elsewhere? Confusing article.

 

[RedViking]

Guptas investments doing well

 

[Benedict A55h0le]

Confusing because the corruption details are hidden.

 

[Sarg3_ZN]

Obviously they need an increase, sin taxes are going up next month, Blue Label doesn't come cheap anymore

 

[WalkWithMe]

What the ****?

Since when does a buyer want to pay more?


Dear sabc, we'd like to increase our TV license payment this year.
Dear minister of energy, we think petrol should go up R5 a litre next month


The mind boggles.

The contract is up for renewal. There were crazy deals done with long term contracts that were problematic. As they redo and renegotiate contracts, the price goes up. If they did it last year, they would have got it at a better price. When the contract does expire, they are going to be screwed and will need to transport "cheaper" coal in with massive costs. There could also be technical details, like different grade coal could be supplied at a higher price. So the cheaper price you get bad quality coal. So many details left out and this is just a sensational article.