CAPE TOWN – A leaked document presented to Eskom executives reveals the next steps to turning the utility around.
The document’s been published on specialist energy website ee.co.za.
It gives some indication of the priorities for leadership and the plans to ensure that Eskom digs itself out of what’s becoming a very deep hole.
The leaked document acknowledges just how precarious Eskom’s position is, stating that the utility came close to complete collapse on several occasions in 2019.
“A fundamental restructuring of Eskom is necessary because Eskom, as it is, is completely unsustainable. And the document points out, if nothing is done will bring the whole of SA down,” said energy expert Chris Yelland.
The document also gives insights into how Eskom leadership are thinking about the turnaround strategy. They divide the plan into three broad subsections, stabilisation, separation and growth.
The stabilisation phase involves debt relief, a tariff increase, a granular plan for how to implement operational reforms, and cost-cutting over the next four years totalling R33 billion.
That cost-cutting could bring the utility into conflict with organised labour as the second biggest cost on the books is salaries, and the unbundling of the utility is likely to lead to job losses.
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