Following the announcement of Andre de Ruyter as Eskom’s new CEO this week, the Department of Public Enterprises has on Wednesday given details about plans to unbundle the cash strapped utility.
De Ruyter would take over at Megawatt Park in January, just two months before the expected completion of the unbundling project.
The department said Eskom would initiate the restructuring process by first creating a transmission subsidiary company, which would fall under Eskom’s control.
Acting deputy director general Makgola Makololo said the Eskom of the future would have three subsidiaries: generation, transmission, and distribution.
She said the unbundling of the transmission side of things should be implemented as soon as March.
“We have put ambitious targets in terms of getting through this process, we expect that the functional unbundling should be completed at the next financial year, which is March 2020,” Makololo said.
She’s told MPs that restructuring the power utility will support economic growth and further investment in the energy sector.
“In terms of the restructuring process, we anticipate that this will drive further transparency in terms of operational costs and support economic growth in the country because we will have downward pressure in terms of prices and we will have further investment in the sector,” she said.
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