Government will deepen support for Eskom but ‘won’t break budget ceiling’
The heavily indebted power utility will get state help in Finance Minister Malusi Gigaba’s 14-point plant to revive the country’s economy
SA will extend more support to Eskom and is considering selling assets as part of a 14-point plan to revive an economy that’s in its second recession in almost a decade. The country would approach the energy regulator this month about the "hardship" Eskom, the state-owned but power utility, was dealing with, and would develop a case for "soft support" of the electricity producer until its new tariffs were finalised next year, Finance Minister Malusi Gigaba told reporters in Joburg on Thursday. Eskom is spending tens of billions of dollars on new power plants that are years behind schedule and is at the centre of allegations that President Jacob Zuma allowed the Gupta family to take advantage of their friendship with him to benefit from state business. The economy tipped into recession in the first quarter as political uncertainty hampered implementing reforms. Two ratings agencies cut the country’s debt to junk in April, citing politics and poor governance at state companies that in...
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