Unbundling of Eskom into three entities still under consideration: Public Enterprises

The unbundling of Eskom into three entities is still under consideration. That’s the assurance of the Department of Public Enterprises. This follows earlier announcement that the power utility will be unbundled into generation, transmission and distribution divisions.

The Department has briefed the Public Enterprises Committee in a virtual meeting. The Public Enterprises Department has given a status report on the unbundling of Eskom and it appears that the process is still ongoing with vague timelines on the completion of the plan. The due diligence for the generation division has been completed.

“The due diligence for the generation division was completed and the Nersa around the national distribution company of South Africa. It was registered and the PFMA approval the section 54 (2) for the sale and transfer of assets to the National Electricity Distribution Company of South Africa was granted by both Ministers of Public Enterprises and Minister of Finance and work is progressing in that regard for the conclusion and sale of assets,” says Jacky Molisane, Acting DG of the Public Enterprises Department.

The transmission division or the National Transmission Company of South Africa (NTCSA) has been established but it is awaiting the appointment of its Board.

“The revised transmission license of Eskom was submitted to Nersa the National Energy Regulator of South Africa in September 2022 for approval and the process is to assign the national transmission company of South Africa as a designated buyer of electricity in the country,” Molisane added.

The Department insists that Eskom is committed to increase the Energy Availability Factor (EAF) to 70 percent by March 2025 in order to end load shedding.

“There have been some improvements in the EAF from the month to date for June which recorded 58% versus in March where it was standing at 54%. The year-to-date decline in the energy availability factor it was mainly due to the unplanned capacity loss factor whereby it stood at around 35%,” Molisane explains.

Meanwhile, the committee has deferred a presentation on the implementation plan of the recommendations on the Zondo Commission of Inquiry into state capture related to Alexkor, Denel, Eskom and SAA.

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Source: SABC News (sabcnews.com)