AVN 65.45 Increased By ▲ 0.50 (0.77%)
BAFL 30.65 Decreased By ▼ -0.86 (-2.73%)
BOP 4.83 Increased By ▲ 0.04 (0.84%)
CNERGY 3.72 Decreased By ▼ -0.12 (-3.13%)
DFML 14.26 Decreased By ▼ -0.15 (-1.04%)
DGKC 41.06 Decreased By ▼ -0.54 (-1.3%)
EPCL 46.56 Decreased By ▼ -0.14 (-0.3%)
FCCL 11.35 Increased By ▲ 0.06 (0.53%)
FFL 5.03 Decreased By ▼ -0.02 (-0.4%)
FLYNG 5.78 Decreased By ▼ -0.04 (-0.69%)
GGL 10.28 Decreased By ▼ -0.17 (-1.63%)
HUBC 67.03 Increased By ▲ 1.39 (2.12%)
HUMNL 5.68 Increased By ▲ 0.02 (0.35%)
KAPCO 27.85 Increased By ▲ 0.10 (0.36%)
KEL 2.19 Increased By ▲ 0.04 (1.86%)
LOTCHEM 24.83 Increased By ▲ 0.48 (1.97%)
MLCF 21.37 Decreased By ▼ -0.11 (-0.51%)
NETSOL 84.20 Decreased By ▼ -0.59 (-0.7%)
OGDC 85.94 Decreased By ▼ -1.31 (-1.5%)
PAEL 11.01 Increased By ▲ 0.03 (0.27%)
PIBTL 4.17 Decreased By ▼ -0.05 (-1.18%)
PPL 74.56 Decreased By ▼ -1.14 (-1.51%)
PRL 13.40 Decreased By ▼ -0.25 (-1.83%)
SILK 0.92 Increased By ▲ 0.03 (3.37%)
SNGP 40.44 Decreased By ▼ -0.89 (-2.15%)
TELE 5.86 Increased By ▲ 0.01 (0.17%)
TPLP 15.42 Decreased By ▼ -0.22 (-1.41%)
TRG 111.63 Decreased By ▼ -0.07 (-0.06%)
UNITY 13.76 Decreased By ▼ -0.22 (-1.57%)
WTL 1.14 Decreased By ▼ -0.02 (-1.72%)
BR100 4,037 Decreased By -26.9 (-0.66%)
BR30 14,412 Decreased By -56.6 (-0.39%)
KSE100 40,471 Decreased By -262.4 (-0.64%)
KSE30 15,163 Decreased By -67.2 (-0.44%)
Business & Finance

S.Africa's Eskom to spin off transmission business by end-2021: CEO

  • Eskom has debt net debt of between 460 billion and 485 billion rand ($34 billion), and is likely to record another "substantial loss" in 2021, de Ruyter said in a live address on YouTube.
  • Why do we prioritise transmission? It's to enable us to demonstrate to private investors, in generation in particular, that their bids will be fairly adjudicated compared to legacy Eskom generation.
Published February 15, 2021
Follow us

JOHANNESBURG: South Africa's state power firm Eskom aims to complete the legal separation of its transmission unit by the end of 2021, its Chief Executive Andre de Ruyter said on Monday, with the generation and distribution units following in 2022.

President Cyril Ramaphosa announced a plan to divide the cash-strapped utility into three units in 2019, but the process has stalled and nationwide blackouts have continued, damaging the already fragile economy.

The plan to split the company, which supplies over 90% of South Africa's electricity but is straining against the burden of heavy debts and failing coal-fired plants, is designed to smooth the firm's access to capital markets.

Eskom has debt net debt of between 460 billion and 485 billion rand ($34 billion), and is likely to record another "substantial loss" in 2021, de Ruyter said in a live address on YouTube.

Eskom is pinning its turnaround on the new structure and increased reliance on renewable energy.

"Why do we prioritise transmission? It's to enable us to demonstrate to private investors, in generation in particular, that their bids will be fairly adjudicated compared to legacy Eskom generation," said de Ruyter.

Some investors and analysts have said the separation could trigger a default under Eskom's current loan agreements as it involves the transfer a number of assets and liabilities.

Each of the three divisions were busy finalising their balance sheets, de Ruyter said. "The underlying issue is how much debt each of the divisions can and should be carrying."

"If all the actors in this ballet play their role and give us those approvals as quickly as is required, we should have the ITSMO (independent transmission system and market operator) in place within the year.

Comments

Comments are closed.

S.Africa's Eskom to spin off transmission business by end-2021: CEO

Imran talks of ‘jail bharo’ movement soon

Pakistan to appeal to Taliban leader over mosque bombing

Section 144 imposed in Peshawar

Marriyum steps up criticism of IK

IK says ‘some other people’ behind acts of vengeance

Foreign authorities seeking properties/bank accounts info: FBR won’t intimate concerned taxpayer about request

Dar chairs meeting on role of PDFL, SOEs

‘Kashmir Solidarity Day’ today

WB board to consider $78m ‘digital economy’ project next month

PM directs PD to recover Rs1.13bn royalty amount from 2 oil, gas cos