Eskom has warned Gupta-owned company Tegeta that it could face a hefty fine for not adequately meeting its coal supply contractual obligation.

The power utility is scrambling to source enough coal to feed one of the country’s major power stations after a dispute with its supplier Tegeta Exploration and Resources.

Leaked Eskom minutes published by the amaBhungane Centre for Investigative Journalism has revealed that Tegeta allegedly threatened to halt coal supplies unless the parastatal paid more per ton.

Eskom spokesperson Khulu Phasiwe says Tegeta will be given time to restore the coal supply.

“Tegeta has a contract to supply us with 400-thousand tons per month, but they are supplying us with much lesser than that,” says Phasiwe.

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