MOZAMBICAN HYDROELECTRIC power generator, Hidroelectrica Cahora Bassa (HCB), has reduced its daily supply to South African utility Eskom by 750MW. The reduced supply is due to a disagreement on the rate of payment between the two utilities, as well as lack of demand in South Africa.
Over a third of the dam's electricity supply contracted to Eskom was actually sold to Zimbabwe because Eskom did not need it. While Eskom's contract allowed it to receive about 1400MW from the dam, it was taking only 750MW. Payment negotiations between HCB, Eskom, the Portuguese (Portugal owns a majority stake in the dam), Mozambican and South African governments were continuing.
Cahora Bassa dam was constructed in the 1970s, only to have its operations interrupted by Mozambique's 16-year civil war which ended in 1992.
