South Africa will hire advisers in the coming weeks to begin negotiations with lenders on a plan to spin off state-owned power utility Eskom’s transmission subsidiary, according to the head of the National Treasury.
President Cyril Ramaphosa has endorsed the creation of an independent transmission system operator, or TSO, outside Eskom as part of efforts to open the electricity market to greater private-sector participation.
But carving out the utility’s most profitable division has raised concerns about Eskom’s long-term financial viability and the treatment of government guarantees backing its debt.
“The transaction is being carefully designed to ensure that Eskom is left no worse off, and that Eskom remains sustainable,” Treasury Director General Duncan Pieterse said in an interview in Cape Town on Tuesday. “The TSO itself also has to be sustainable.”
Pieterse, who Ramaphosa this year appointed to head a team in charge of Eskom’s restructuring, faces a complex balancing
You’ve reached your free article limit
Subscribe to enjoy unlimited access to trusted journalism. Cancel anytime.
Subscribe nowNeed help? molokom@insidepolitic.co.za
