BHP in power price brawl

Company News


BHP Billiton ( ASX:BHP) is embroiled in a public brawl over the price it pays for electricity in South Africa. 

Power provider, Eskom, has warned of power shortages over the coming winter, due to surging demand, and has requested companies cut their usage by 10 per cent.

BHP has held a long term contract with Eskom since 1992, and pays a set price at its aluminium smelters.

However, South African newspapers are accusing BHP of receiving preferential treatment, and of buying power for half the market price.

BHP says the negotiated price is legally binding.
 
BHP Billiton last reported a $4.1 billion net profit to December 31. 

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