According to this article on News 24 and combining that information with this article on Times Live, we can quickly deduce that BHP Billiton is buying electricity at close to a quarter of the current production cost.
The current government/Eskom management will probably come up with some feeble excuse to blame the previous dispensation, but these contracts were signed in 1997, 3 years after the ANC took office.
This means that either a BEE candidiate with not enough experience & knowledge negotiated the deal, without taking into consideration that production cost could rise significantly. Like it did.
Or we’re looking at some hidden corruption, with the person/people that negotiated the contract taking some bribes to sell electricity below cost.
Which is it?
Either way, us regular household and small business consumers are being screwed. Eskom has received permission to hike their tariffs by almost 100% over the next 2 years, yes they say 3 years, but the first hike happen now, and the 3rd will happen in 2 years time.
Surely these hikes have to be retracted and investigated now that this has come to light.