Eskom split long in pipeline
Decision to unbundle utility first taken in early 2000 but stalled by Enron collapse
Restructuring plans first mooted for ailing power utility Eskom close to two decades ago were brought back onto the table this week after pressure from lenders, who threatened to pull the plug on financing the company that is sitting with debt close to half a trillion rand. Plans announced by President Cyril Ramaphosa in his state of the nation address to unbundle the parastatal into three units - generation, distribution and transmission - were on the drawing board towards the end of the 90s as the state considered the introduction of private shareholders into various other state-owned enterprises (SOEs). The new structure could also result in the selling off of assets that are not considered strategic, Eskom chairperson Jabu Mabuza told Business Times on Friday. "The new plan can and should be done as soon as possible," Mabuza said. An Eskom task team set up late last year presented the plan to Ramaphosa and told him that lenders were uncomfortable with the sheer size of Eskom and...
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