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South African Eskom Says EDM Owes 14.6 B Meticals

South African Eskom Says EDM Owes 14.6 B Meticals

Mozambican state company Electricidade de Moçambique (EDM) has overdue payments to its South African counterpart Eskom to the tune of almost 1 billion rand (14.6 billion meticals), including amounts in dispute since 2019, the South African press reported.

“As of October 31, EDM owed Eskom 847 million rand” (3 billion meticals), Eskom told South African daily newspaper Business Report. “That amount includes the current account, uncontested arrears, a disputed debt of 350 million rand (1.2 billion meticals) as well as interest on the debt,” he said.

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According to the South African newspaper, the arrear payments from the Mozambican electricity company to South Africa include a dispute between the two power utilities regarding the origin of the electricity billed for the months of October and November 2019.

According to South Africa’s state-owned electricity company, its Mozambican counterpart EDM claims to have received additional power from Hidroeléctrica de Cahora Bassa (HCB).

Eskom indicated to the newspaper that the company currently purchases 1 150MW of electricity from HCB under an agreement until 2030.

The South African state-owned electricity company, which is also facing arrears from municipalities in South Africa to the tune of 52 billion rand (189.1 billion meticais), noted that the process of paying EDM’s debt is now in mediation.

“We have no problems with our international clients, it is only with Mozambique that we are trying to obtain the payment of some amounts in dispute and also some agreed amounts that have not been paid. We are in mediation,” said the head of Eskom’s transmission operations, Segomoco Scheepers, quoted by the newspaper.

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In June last year, South Africa’s Minister of Mineral Resources and Energy, Gwede Mantashe, made a working visit to the Mozambican capital, Maputo, where he met with the Minister of Economy and Finance, Max Tonela, to discuss bilateral cooperation between the two countries in the energy sector. South Africa’s state-owned electricity company has maintained large-scale power cuts in the country due to a shortage of generation capacity resulting from breakdowns and delays in the return of some generation units into service.

In April, at the peak of South Africa’s electricity supply cuts, known as “load shedding,” HCB did not make 270 MW available to South Africa due to maintenance work at Cahora Bassa, according to the South African power company.

South Africa, considered the largest producer of electricity on the continent, which comes 80% from coal, also imports 75% of the total production of Hidroeléctrica de Cahora Bassa (HCB), in Mozambique.

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