It’s official: Eskom to be split
PRESIDENT Cyril Ramaphosa last night announced the much-expected plans to unbundle power utility Eskom into three separate entities.
Delivering his second State of the Nation Address in Parliament, Ramaphosa said Eskom was in crisis and the risks it posed to South Africa were great.
“It could severely damage our economic and social development ambitions. We need to take bold decisions and decisive action,” he said.
“The consequences may be painful, but they will be even more devastating if we delay,” Ramaphosa said.
He said the government would lead a process with labour, Eskom and other stakeholders to work out the details of a just transition, and proper, credible and sustainable plans that would address the needs of all those who might be affected.
Ramaphosa said Finance Minister Tito Mboweni would provide further details in his Budget speech.
Ramaphosa also said Eskom would need to develop a new business model.
“We shall immediately embark on a process of establishing three separate entities – generation, transmission and distribution – under Eskom Holdings.
“This will ensure that we isolate cost and give responsibility to each appropriate entity,” he said.
He said of particular and immediate importance was for Eskom to manage an independent state-owned transmission grid combined with the systems operator and power planning, procurement and buying functions.
“It is imperative that we undertake these measures without delay to stabilise Eskom’s finances, ensure security of electricity supply, and establish the basis for long-term sustainability.”
The proposal arose from recommendation made by a task team appointed by Ramaphosa.
The plans to unbundle Eskom are likely to be rejected by trade unions such as Numsa and NUM.
The unions have already voiced their opposition to the planned move, saying it would be a recipe for retrenchments.
Ramaphosa also said the revelations emerging from the Zondo Commission of Inquiry into state capture and other commissions were deeply disturbing.
“Where there is a basis to prosecute, prosecutions must follow swiftly and stolen public funds must be recovered urgently.”
He said he had agreed with the National Director of Public Prosecutions, Shamila Batohi, that there was an urgent need to establish in the office of the NDPP an investigating directorate dealing with serious corruption and associated offences.
“I will soon be promulgating a proclamation that will set out the specific terms of reference of the directorate.
“In broad terms, the directorate will focus on the evidence that has emerged from the Zondo Commission of Inquiry into State Capture, other commissions and disciplinary inquiries,” Ramaphosa said.
Ramaphosa announced May 8 as the date of the election.
“We wish to remind all eligible South Africans who have not yet registered as voters that they still have until the proclamation of the election date to register.”
Last night’s State of the Nation Address went smoothly, despite threats from the EFF to turn it into question-and-answer session.
The “red berets” had threatened to disrupt it unless Ramaphosa came clean on Bosasa.