Analyst slams idea of second power utility

Energy Economist Lungile Mashele has slammed the governing ANC’s plan of a second state-owned power utility.

Speaking during the SACP’s 15th Conference, President Cyril Ramaphosa announced that the party is considering establishing the entity to reduce the risk posed by Eskom’s failings. According to the president, the proposal was tabled by Energy and Mineral Resources Minister Gwede Mantashe.

Mashele says this shows just how out of touch the governing party is with what is happening in the country. Eskom went to government and told them they were going to run out of electricity in 10yrs and they need to do something. The failure of Eskom emanated at that point and that was at the hands of the ANC. This is the same ANC that’s now saying that they want a second entity. How will this entity operate differently, how will it be more profitable?”

Eskom debt burden

Mashele asks how the entity will cope with Eskom’s debt woes. “Eskom is sitting with about R450 billion in debt, how is this now going to be transferred to this new entity or is this new entity going to start off on a clean slate, and I think more than anything is just to understand how this entity be run more differently that how Eskom is being run at the moment.”

VIDEO | ANC President Cyril Ramaphosa addresses 15th SACP National Congress:

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Source: SABC News (sabcnews.com)