Experts brief ANC on Eskom survival plan
Eskom is deep in financial crisis and is unable to pay the interest on its R419bn debt burden out of revenue it generates
The restructuring of Eskom, including a substantial debt bailout and its break-up into three parts, was put to the ANC lekgotla on Saturday as the first step towards dramatic changes to save the company. The lekgotla was briefed by a task team of experts established by President Cyril Ramaphosa to guide the government on a way forward for the company. Eskom is deep in financial crisis and is unable to pay the interest on its R419bn debt burden out of revenue it generates. The power utility is acknowledged as the single biggest risk to the SA economy by the Treasury, credit ratings agencies and the investment community. The task team has put forward a package of proposals, which include splitting Eskom into three state-owned companies for generation, transmission and distribution. It is also recommending a substantial bailout, as well as tariff hikes. Eskom chairman Jabu Mabuza has put the quantum of debt relief required at R100bn. The task team has not put a number on the bailout as...
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