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[LISTEN] Unbundling Eskom a step in the right direction?

Energy expert Chris Yelland says the unbundling of the power utility will come with a number of benefits including driving more assets into the different businesses.

JOHANNESBURG - During his State of the Nation Address last week Thursday, President Cyril Ramaphosa announced that in order to turn around the embattled state power utility, three separate entities will be established to deal with generation, transmission and distribution under Eskom Holdings.

While credit ratings agency Moody’s says the unbundling of the parastatal will do little to solve its financial woes, energy analyst Chris Yelland says this is a good move by government and an important first step in restructuring the power utility.

“This is a beginning of a process and not an event and it is going to take some time and we also need short-term solutions as well.”

Yelland says the unbundling of the power utility will come with a number of benefits including driving more assets into the different businesses.

Listen to the audio above for more.

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