[miningmx.com] – THE lost revenue from Eskom’s much-criticised power contract to BHP Billiton totalled R11.5bn, said BDLive citing financial statements issued by the South African power utility.
“The liability is effectively an opportunity cost of supplying electricity to BHP Billiton on the current special pricing formula versus if we were to sell it at regular industrial customer tariffs,” Eskom spokesman Andrew Etzinger told BDLive.
In last year’s statements, Eskom put the liability from the contracts at R5.9bn. For the year ending March 2013, this has been restated as R11.5bn, said BDLive. The length of the contracts has been a matter of dispute between Eskom and BHP Billiton.
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