Ways to finance power build

PRETORIA – South African power utility Eskom could find other ways, apart from large tariff increases, to fund its massive electricity capacity expansion, central bank Governor Tito Mboweni said yesterday.

“I think there are many other ways we can increase electricity production capacity … I want to discuss (this) with both Eskom and the Treasury,” he told reporters.”There are other ways we can (use) to make the pain somewhat less than it might be.”Eskom has asked for a revised 53 per cent tariff hike for 2008, which if accepted will add further to inflationary pressures and make it more difficult to bring CPIX back to the bank’s three to six per cent band.Nampa-ReutersI want to discuss (this) with both Eskom and the Treasury,” he told reporters.”There are other ways we can (use) to make the pain somewhat less than it might be.”Eskom has asked for a revised 53 per cent tariff hike for 2008, which if accepted will add further to inflationary pressures and make it more difficult to bring CPIX back to the bank’s three to six per cent band.Nampa-Reuters