President Cyril Ramaphosa has reiterated that government\u2019s attempts to reconfigure and split Eskom into three divisions is not aimed at privatising the embattled power utility.<\/p>\n
These measures, he said, are rather aimed at stabilising the utility and getting it back on its feet.<\/p>\n
\u201cWe are not going to privatise Eskom,\u201d he said, comparing the move to auctioning one\u2019s family for silver. \u201cEskom is going to continue being owned by our government.\u201d<\/p>\n
To reverse the entity\u2019s current predicament, government has announced drastic interventions, ranging from addressing debt to operational matters.<\/p>\n
The President made the remarks while addressing Eskom workers and contractors at the Medupi Power Plant in Lephalale in Limpopo today. He is in the area for the launch of the third leg of the District Development Model.<\/p>\n
In his State of the Nation Address early this year, President Ramaphosa announced that Eskom would in the near future be split into three entities focusing operations, distribution and transmission.<\/p>\n
On Tuesday, he reiterated that there were no sinister motives behind the move.<\/p>\n
\u201cThis has been done all over the world. China has done it, Brazil has done it, a number of countries in Africa have done it, some countries in Europe have done it. They have done the focus areas of the business so that they can maximise and get people to pay, so that they operate efficiently. And that is precisely what we are seeking to do,\u201d he said.<\/p>\n
President Ramaphosa further announced that Unit Two has today come into operation. Unit One is expected to come into transmission sometime next year.<\/p>\n
He also used the platform to underscore that coal would continue to play a major role in the country\u2019s energy generation.<\/p>\n
\u201cWe want to modernise Eskom so that Eskom can operate better, so that Eskom can be in line with new technologies, in line with modern times. Eskom must be able to compete with other electricity generating companies around the world.<\/p>\n
\u201cAlready we are number four with Medupi. We have got to stay up there and be able to operate at the same level as others,\u201d he said.<\/p>\n
The President pointed out that while South Africa was the biggest energy producer on the continent, this had come at huge financial cost.<\/p>\n
\u201cOne of the biggest challenges is the debt that we have had to build Medupi and Kusile. In building these power stations, we have had to go and borrow a lot of money and today Eskom owes over R400 billion, which is a debt that the government has to carry,\u201d he said.<\/p>\n
Because of that debt and other factors, the country\u2019s economy has suffered the consequences.<\/p>\n
\u201cBut we are addressing this problem. The government has decided that we are going to continue to support Eskom. We aren\u2019t going to let Eskom go down. Eskom is too important, we are going to support Eskom, even though we have got a huge debt,\u201d he said.<\/p>\n
The President saluted the workers for contributing to the work at Medupi.<\/p>\n
\u201cWhat is important is to see all of you who have been involved in building this power station. The power station that we are building is already the fourth biggest in the world. And you can be proud in that you have managed to build a mighty power station that is recognised all over the world.<\/p>\n