Projects and Energy Weekly Snippets

Weekly projects and energy updates in South Africa

EDF signs 420 MW hydro construction deal with Cameroon

On Tuesday, an agreement was signed between the French power utility Électricité de France (EDF) and the government of Cameroon for the construction of a hydroelectric power facility.

Fox Business News reported that the US$1.23 billion Nachtigal power plant will be constructed 65 kilometres northeast of the country's capital Yaounde.

The agreement states that the plant will be completed by 2022.

ESI Africa, 9 June 2017

Hikes on cards as NERSA and Eskom appeal is upheld

The Supreme Court of Appeal on Tuesday upheld an appeal by the National Energy Regulator of South Africa (NERSA) and power utility Eskom, opening the door for the approval of further electricity tariff increases.

Eskom’s direct and municipal customers could be affected as the regulator is now able to process claims by Eskom to recover retrospective revenue, over and above price increases agreed upon through a multi-year tariff calculation system. Eskom is able to apply for tariff increases to accumulate through regulatory clearing account (RCA) applications.

Business Day, 7 June 2017

African Energy launches IPO for planned acquisitions

African Energy Partners plans to sell shares on the alternative board of the JSE later this month to help fund as much as ZAR4 billion (US$311 million) of planned acquisitions in the energy and power industries.

An initial public offering (IPO) on the JSE’s AltX index and separate stake sale to a selected group of investors could raise as much as ZAR500 million, chief operating officer Nkosi Gugushe said in an emailed response to questions. Stock will be sold to the public at ZAR10 a share and the offer will close on 15 June, if a minimum target of ZAR50 million is reached, he said.

Business Day, 6 June 2017

Consumers could face a 20% electricity tariff hike 

Eskom aims to hike power prices almost 20%, a confidential draft application shows.

If approved, such a drastic increase could negatively affect municipalities and businesses that are already struggling to keep up with high power costs.

A steep increase in electricity prices will put upward pressure on inflation, which has been looking more benign for the coming year.

Business Day, 6 June 2017

The above reflects a summary of certain news articles published during the preceding week. It is not an expression of opinion in respect of each matter, nor may it be considered as a disclosure of advice by any employee of Hogan Lovells.

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