Those who were betting on Eskom being privatised may want to rethink that given a statement made by Cyril Ramaphosa this week.
The President of South Africa has said that government will not privatise Eskom but rather seek out “smart partnerships” as part of the utility’s proposed restructuring.
“What I would like to be made clear is that we are not privatising Eskom. We are going to be looking at smart partnerships that can be struck. It is possible that we can have a smart partnership with other entities on certain aspects of Eskom,” Ramaphosa said speaking at the National Council of Provinces in Parliament on Thursday.
The President reiterating government’s plan to restructure Eskom into separate entities for generation, transmission and distribution. Government will control generation and transmission while also playing a role in distribution.
This restructuring is expected to be detailed in a special paper which will be released ahead of the Medium Term Budget Policy Statement at the end of October.
“With the publication of the Special Paper on Eskom and the implementation of its recommendations, we will shift from crisis management to sustainable recovery for Eskom,” said Ramaphosa.
The president went on to state that it is broadly accepted that Eskom’s current structuring is outdated and unresponsive to changes in the market.
With all of this having been said some hard work needs to be done at Eskom to turn the ship around. With load shedding having wrought havoc on the country earlier this year, Ramaphosa and government at large best have a great plan to curb the risk of power cuts as we move into the warmer Summer months.
We now await the special paper to learn how government plans to address Eskom’s woes through restructuring.
[Source – SA Government News Agency]