ANC wants to scrap Eskom debt

The ANC wants to scrap the debt that poor municipalities owe Eskom.

JOHANNESBURG - The ANC wants to give a free pass to some municipalities who owe Eskom money.

The governing party revealed its restructuring plans for key SOEs.

It's agreed to let big business generate its own power and municipalities to buy electricity directly from Independent Power Producers (IPPs).

READ: Newcastle's Eskom debt: Municipality seeks relief

"Municipalities which are non-viable... we are saying national must look into the national fiscus to address challenges of certain municipalities with no tax base," said ANC secretary-general Ace Magashule.

It’s still unclear if government will agree to scrap the debt, or how long it will take to allow businesses to keep their own lights on.

READ: Soweto residents add another billion to Eskom debt

The party said South Africa will have to lean on private energy producers to free up space for Eskom to conduct much-needed maintenance.

“Regulations should be eased to allow increased level of self-generation in the economy and for municipalities in good financial standing to procure their own power,” said the ANC's head of economic transformation, Enoch Godongwana.

The ANC says it will ease regulations to allow big business to generate its own power and municipalities to buy power directly from Independent Power Producers. The governing party's revealed its restructuring plans for key SOEs. Courtesy #DStv403

Source
eNCA