NEW DEAL--Eskom's Godsell seeking new deal with aluminium smelters, as secured with coal-miners

摘要

Eskom is going all out to strike a new deal with its commodity-and-currency-linked customers and points to the success the State-owned utility has had with its coal-miner suppliers as a beacon of hope. The pursuit of a 'new deal' is the result of Eskom slumping to its worst-ever loss of 9,7-billion rupees in its 2008/9 financial year to the end of March, primarily a massive fair-value loss on embedded derivatives with mainly its aluminium-producing customers and on higher coal costs. Eskom's 7-billion rupees overspend on coal -to a whopping 25,4-billion rupees compared with 18,4-billion rupees in 2008 - was mainly the result of emergency, short-term purchases, in order to restore depleted coal stockpiles to a 41-day level, from a 13-day level during the crisis.