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South Africa to publish Eskom plans in next few weeks

Department of Public Enterprises says report will clearly outline the government’s plan to make the struggling utility sustainable.

The South African government in the next few weeks will publish a paper outlining how it plans to put troubled state power utility Eskom on a path to long-term stability, the Department of Public Enterprises said on Saturday.

Eskom, which supplies more than 90% of the power in Africa’s most advanced economy, is reliant on state bailouts to survive and has had to implement rolling power cuts.

Read: Eskom tells senior managers unit separation to take three to five years

It reported a loss of R20.7 billion in its most recent financial year.

President Cyril Ramaphosa has proposed a bailout and restructuring, but it is not clear how this will be balanced with political sensitivity to job cuts nor whether it will be enough to fix Eskom’s problems.

The department said its paper would clearly outline the government’s plan to make the struggling utility sustainable.

“The paper will reflect the urgent work that is taking place to identify options to resolve the debt challenge, the process for restructuring Eskom and importantly, to ensure a just transition,” the department said in a statement.

Fixing Eskom is one of the biggest challenges faced by Ramaphosa, whose economic reform drive has been jeopardised by power outages that have dented growth this year.

Eskom has been hurt by a steep rise in salary, fuel and debt-servicing costs over the past decade.

Its financial performance has also been hurt by corruption and repeated tariff awards by the country’s energy regulator that are below what Eskom says it needs to recoup its costs.

Chief restructuring officer Freeman Nomvalo is working on dealing with Eskom’s debt and financial challenges and a number of options are being evaluated by experts, the Department of Public Enterprises said.

Ramaphosa and the minister of public enterprises, Pravin Gordhan, have made initial contact with unions over the planned restructuring, a key component of which is separating Eskom into different units for transmission, generation and distribution, the department said.

Splitting Eskom into three business units could take four years, the company said in an internal presentation seen by Reuters.

Consultations over Eskom’s future were continuing at both a management and government level, the statement said.

Eskom will also deploy around 200 technical and engineering staff to power stations to ensure stable generation, it said.

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Lots of papers, plans and commissions bot absolutely no action.!!!

These 2 sets offigures some up 50% of the problem:

2010 – generated = 228944 GWh Employees = 36547 Net nebt = 139.7 R billion
2019 – generated = 218939 GWh Employees = 48628 Net Debt = 348.1 R Billion

The rest of the problems include an incompetent government and management, pool productivity, lack of skills and experience as well as a militaristic union !!!

I bet that none of you “plans” will address the REAL issues!!!!

Should be fascinating. No job losses, no competent managers required. No need to clean up the pollution.

Medupi and Kusile to be completed at whatever cost. Bailouts coming from your pension plan.

No need for a competent CEO. A cadre will be just fine.

Didn’t know you actually needed a plan for this sort of stuff, but a 13 point plan will sound impressive especially when you can unpack each point into a 1000 separate to do lists.

BEE consultants should be rubbing their hands in glee.

Fish rots from the head-and the head is very very rotten. Pre election Comrade Gordhan deliberately interfered with the CEO halting a wage freeze solely for political reasons. This one time red pharmacist should join Rob Davies in an old age home. He disgusts me!

I am hoping to see many of the 15,000 Eskom employees, who are excess to requirements, out in force apologizing to the ordinary taxpayer for funding their positions and allowing them to play on their cellphones all day while we work! Yeah right. Remember they are entitled.

All talk to pull the wool over ratings agencies eye’s.

The same BS as they say they are dealing with corruption. This lot acts as though someone else created the problem.

They should all be stamped clearly on the forehead.

“DON’T REPRODUCE”

ANC 5 step plan:
1. Assure all workers that they will keep their jobs and get above CPI increases for the next 5 years
2. Offer an immediate tax free bonus to all employees to improve their motivation
3. Ask the unions nicely for what they will allow the ANC to do
4. Plead poverty to garner support for implementing prescribed assets
5. Get back to the business of rigging tenders and taking backhanders with the new pot of money

There is a planned substation being built in our area ,now 9 months behind schedule on an original projected 24 month completion.
This is not a major project so i cannot see how these monkeys are going to turnaround Eskom’s bigger issues.
Talk talk talk steal steal steal

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