State to shed load of Eskom bailout on taxpayers?

2014-09-15 15:36

The Democratic Alliance is demanding answers from government on what its bailout plan for Eskom will entail. Responding to yesterday’s announcement by Cabinet that it had approved a funding package to help Eskom with its R225 billion shortfall, DA MP Natasha Michael said she would write to Public Enterprises Minister Lynne Brown and Finance Minister Nhlanhla Nene to request documents relating to the bailout.

“Reports suggest that businesses and consumers are to carry a large portion of the load through increased electricity tariffs,” said Michael.

“We need absolute clarity on these tariff increases, the process followed in making this decision and the proportion of the debt to be absorbed directly by taxpayers through increased tariffs.”

The government said it would support Eskom’s application to the National Energy Regulator of South Africa for tariff adjustments in line with the regulatory process.

In addition, Eskom would receive funding, from leveraging nonstrategic state assets, to relieve the effect on consumers and to strengthen the utility’s balance sheet.

Nene would provide details in his budget announcements.

Eskom would raise additional debt in the region of R50 billion, over and above its original plan of R200 billion during the third multiyear determination period.

The debt raising would be supported by the “substantial guarantee facility” from the government.

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions. publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24


Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.