1. Introduction Eskom has a debt problem, so split the company into three. Three? What has that got to do with debt? Eskom also has operational problems, but restructuring will not fix coal purchasing (its major expense) or plant maintenance. It will certainly disrupt central services. There are some “new rules” and “one basic truth” in the Eskom environment. Apply the new rules, recognise the truth — and the power will flow. 2. Background Eskom’s debt problem is all over the news and (edited) comments on it include: EWN reports: “The task team set up to help stabilise Eskom is reportedly proposing splitting the company into three state-owned entities (SOEs).” Public enterprises minister Pravin Gordhan said: “Eskom’s financial and operational problems were unlikely to be solved without structural changes.” Eskom chair Jabu Mabuza emphasised: “Someone” has to pay the debt: “either the consumer or the taxpayer has to pay.” Nolan Wapenaar of Anchor Capital suggests a controlled default...

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