Eskom Holdings SOC Ltd. said Chief Executive Officer Brian Dames resigned as the supplier of more than 95 percent of South Africa’s power’s profit fell 3.2 percent amid higher production costs and constrained supply.
Eskom Holdings SOC Ltd., supplier of 95 percent of South Africa’s power, said it has begun scaling back coal purchases as it takes plants offline for maintenance during the summer months when electricity demand wanes.
South Africa’s main electricity provider is running out of capacity and now needs to find 191 billion rand ($19 billion) to fill a funding gap to avert a repeat of blackouts that closed mines and factories in 2008.
South Africa appointed Brian Dames to head state utility Eskom Holdings Ltd., filling an eight- month leadership void as the company struggles to resolve a funding crisis that threatens to cut power to homes and mines.
Eskom Holdings SOC Ltd., the South African power producer seeking to boost capacity 25 percent, said its Medupi plant will be delayed to 2014 as contractors’ “underperformance” and labor disruptions drive up costs.
Eskom Holdings Ltd. is encouraged by the demand for its $1.75 billion bond sale, the first dollar- denominated notes sold by the South African power utility, and will take the success “forward” as it assesses future funding, Chief Executive Officer Brian Dames said.
Eskom Holdings Ltd., South Africa’s state power utility, said it plans to raise “significant” funds from the debt markets early next year to help fund a 190 billion-rand ($27 billion) gap in its expansion plans.
South Africa’s mining industry, backbone of the continent’s biggest economy, is heading for its worst electricity shortage in five years in a threat to platinum and gold production and to the rand currency.
Electricity supplies in South Africa, the continent’s largest economy, will become more constrained during the next two months, resulting in a possible shortfall of as much as 2,000 megawatts in March, the state-owned power utility said.