Ramaphosa wants to split Eskom in two: report
President Cyril Ramaphosa’s expert task team has recommended that Eskom be broken into two state-owned companies.
According to BusinessDay, the idea was mooted at the cabinet lekgotla this week, with Ramaphosa hoping to announce the change during his state of the nation address on 7 February.
The first company will reportedly focus on generation and will be responsible for the running and maintenance of Eskom’s power stations.
The second company will focus on transmission and will own and operate the national grid.
This system would allow the grid company to buy power from the best-priced supplier – including wind and solar producers, sources told BusinessDay.
Eskom is currently R419 billion in debt and has continued to lose money hand over fist.
In addition to monetary concerns, it has also had to deal with the growing issues of a bloated workforce and ageing and poorly maintained plants can’t always produce enough power to meet declining demand.
While tariff increases, staff cuts and government bailouts all remain as possible alternatives, experts have previously stated that breaking up the company might ultimately be the only way to save it.
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