JOHANNESBURG, July 31– South African President Cyril Ramaphosa on Friday endorsed the first phase of a restructuring plan for state-owned power utility Eskom, marking a major step forward in the country’s efforts to reform its electricity sector.
According to a statement by the Presidency, the Phase I report of the Eskom Restructuring Task Team recommends establishing an independent Transmission System Operator, separate from Eskom, to support the development of a competitive electricity market and improve the efficiency of the power sector.
The report found that the proposed restructuring of Eskom is feasible and would not negatively affect the utility’s financial position, the Presidency said, adding that the second phase will begin immediately, with a detailed implementation plan expected to be developed over the next three months.
The report also identified rising municipal debt owed to Eskom as a major challenge and recommended measures to strengthen debt collection and improve governance in the electricity sector.
The restructuring of Eskom was first announced in 2019 as part of the government’s efforts to improve the performance of the troubled power utility.
Under the plan, Eskom is being separated into generation, transmission, and distribution businesses while remaining under Eskom Holdings. (Namibia Daily News / Xinhua)
