Eskom loses assets fight as Ramaphosa backs split
President Cyril Ramaphosa has confirmed the unbundling of Eskom, moving transmission assets to an independent company to foster a competitive electricity market. This decision follows months of internal debate regarding the utility's financial viability.
Why it matters
This structural reform is a critical step in South Africa's efforts to resolve its long-standing energy crisis and improve economic growth.
President Cyril Ramaphosa has sought to allay fears that stripping Eskom of its transmission assets as part of the unbundling process first mooted six years ago will leave the utility in a far worse financial position — with municipal debt the next litmus test for a successful unbundling.
On Friday the president all but sealed the fate of the transmission assets after months of intense lobbying by Eskom’s top brass to retain ownership, a move that pitted the state power utility against big business formations and led to a public spat last month.
Ramaphosa said he has received and studied the report by the National Treasury-led Eskom Restructuring Task Team (ERTT), which he appointed in February to draft a blueprint for the power producer’s unbundling.
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