Eskom unbundling will go ahead, says Gordhan

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An electricity pylon (iStock).
An electricity pylon (iStock).

Public Enterprises Minister Pravin Gordhan announced on Tuesday that Eskom's unbundling would go ahead and that there was no deviation from that plan.

Gordhan was speaking during the debate on the State of the Nation Address. Following his address last week, President Cyril Ramaphosa came under fire from critics for his failure to further outline details on how the embattled power utility would be unbundled.

Unions have also said that they have not been privy to any meetings, barring one, on the matter since Ramaphosa first announced the unbundling in February.

'No deviation'

On Tuesday, Gordhan said the recommendation to restructure Eskom was based on both international trends and a study of Eskom itself.

"Eskom has begin to develop a road map to implement the proposals in the February 2019 SONA: to separate its Generation, Transmission and Distribution functions into three separate business entities, wholly-owned by the State," Gordhan said.

"There is no deviation from this strategic path – not in Cabinet or in government – contrary to persistent public speculation."

Gordhan said Eskom’s separation would provide a number of other benefits, including greater transparency of financial and operational performance, in each entity.

He went on to list some of the details being looked at, which include power transfer polices and contracts, internal structural organisation, financial reporting and auditing processes per business division, among other things.

"Government will ensure that appropriate consultations will occur, in particular with organised labour on the implementation of the Separation Project," he said.

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