South African power utility Eskom faces increased financial pressure from lower than anticipated tariffs, rising diesel costs and the impact of labour disruptions, all which could lead to the need to raise more capital, rating agency S&P Global said.
Intermittent power cuts have been blamed for hindering growth in Africa’s most advanced economy.
The state-owned company has started easing lengthy power outages implemented from the end of June after a strike by its workers who have now secured a wage deal. The so-called “Stage 6” power cuts – or load shedding – left most South Africans without power for at least six hours a day.
S&P Global said Eskom’s funding requirements for its financial year to March 2023 could now be as much as 45 billion rand ($2.64 billion), up from a previously estimated 30 billion rand, due to lower revenues and higher costs.
“Not only did South African energy
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