Maputo, Mozambique, 16 Jan – South African electricity company, Eskom this year will begin paying 12.56 rand cents per kw/hour of power from the Cahora Bassa Hydroelectric Dam as compared with the 3.6 cents it currently pays, under the terms of an agreement signed in 2002.
At the time, the agreement was only possible after HCB had suspended supply to Eskom for a few days, because the South African company was refusing to negotiate a new tariff.
Under the terms of the agreement, the amount that Eskom, which is HCB’s main customer, paid had to be slowly increased in order to reach 12.57 rand cents per kw/hour this year.
HCB has a generation capacity of up to 2075 megawatts. As well as to South Africa, the Cahora Basssa dam currently supplies power to Mozambique and Zimbabwe and via the Southern African Power Pool (SAPP), also sells electricity to Namibia and Botswana. In 2009, the company will also be able to sell electricity to Malawi.
HCB, which is still under Portuguese management, will be controlled by Mozambique when US$700 million is paid to Portugal of a total US$950 million agreed for Portugal’s stake to be reduced from 85 percent to 15 percent. (macauhub)