Eskom unbundling
Unbundling of Eskom progressing well, says Public Enterprises Dept
Public Enterprises Director-General Kgathatso Tlhakudi said that the process should be complete by the end of 2022.
Public Enterprises Minister Pravin Gordhan and Eskom CEO Andre de Ruyter on Wednesday told Parliament that while progress was made, the unbundling process was complex, and that caution was needed.
Eskom CEO Andre de Ruyter said the first phase to divide the huge business into three subsidiaries operating under Eskom Holdings had progressed well but there were legal processes outside its control.
The power utility said dividing Eskom into three parts is the best solution to bring it back to stability.
President Cyril Ramaphosa announced last year that Eskom would be split into units for generation, transmission and distribution, as part of plans to overhaul South Africa’s power sector
South Africans are back within the grips of rolling blackouts, which Eskom is blaming on capacity issues brought on by the further breakdown of units.
The Department of Public Enterprises on Wednesday briefed the committee on the document which set out Eskom’s roadmap for the next year and beyond.
The paper - tabled at a meeting of the public enterprises portfolio committee - sets out the roadmap for Eskom for the next year and beyond.
The NUM has rejected Andre de Ruyter’s appointment as Eskom CEO, describing it as a setback for transformation.
NUM wants the government to abandon its plans to split Eskom into three divisions, fearing that this will lead to its privatisation.
The plans, which included the implementation of the unbundling programme, were contained in a paper which was launched by Public Enterprises Minister Pravin Gordhan this week.
The NUM fears the plan to split Eskom into separate units for generation, transmission and distribution will lead to Eskom being privatised.
Deputy President David Mabuza said that government was working to address ratings agencies’ concerns about the country’s slow growth, burgeoning government debt and unstable state-owned entities.
Responding to oral questions in the National Assembly, Deputy President David Mabuza was quizzed about how the government would go about avoiding future ratings downgrades and whether he supported the unbundling of Eskom into three different entities.
South Africans have been urged to comment on the report, which draws on several themes including addressing distorted patterns of ownership and modernising industries.
With a debt burden in excess of R440 billion and aging infrastructure, it’s going to be challenging for those tasked with fixing it.
He said he would also work on ensuring Eskom remains a reliable and sustainable supply of electricity for the country.
The tripartite alliance has presented a united front going to elections, but the elephant in the room is Eskom.
Good party leader Patricia de Lille said that it is foolish to invest more money into Eskom, who she says cannot be trusted with public funds.