Gordhan unveils Eskom’s future blueprint

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CAPE TOWN, October 29 – Eskom’s planned restructuring will not be delayed any longer, starting with the creation of a transmission subsidiary, Public Enterprises Minister Pravin Gordhan said on Tuesday as he unveiled a blueprint for rescuing the struggling power utility.

Gordhan said Eskom’s current business model, and its monopoly on energy supply, could not continue, but the three arms of the company¬†– distribution, transmission, and generation – would all remain functional subsidiaries of an Eskom holding company.

The minister stressed that the plans did not amount to privatisation and said the unbundling of the distribution arm would require further study, and was therefore not imminent.

Gordhan said the company would appoint a new permanent CEO shortly.

The release of the 60-page document comes on the eve of Finance Minister Tito Mboweni’s medium-term budget policy statement.

It does not explain how Eskom could restructure the debt of more than R450 billion.

– African News Agency (ANA)