Gordhan outlines Eskom's future plans

Public Enterprises Minister, Pravin Gordhan, has presented a new comprehensive roadmap to save struggling Eskom. Courtesy #DStv403

JOHANNESBURG - Public Enterprises Minister Pravin Gordhan has mapped out Eskom's future.

Gordhan outlined the road for the unbundling at the utility.

The minister has repeated plans to break the power utility up into three separate entities namely Transmission, Generation and Distribution.

He says splitting the utility into three separate entities may offer solutions.

WATCH: Gordhan to release Special Paper on Eskom

Gordhan says creating internal competition is a priority for Eskom's turnaround plan.

"The new component that we are introducing is that in monopolies it is important to have competition if you don't have competition, you don't get the right price for whatever it is that you are producing," Gordhan said.

READ: Eskom will be unbundled, says Gordhan

"On the generation side, we are saying, explore the possibility of taking the 15 or 16 coal power stations and breaking them up into clusters and let them compete, it won't happen tomorrow morning, it will happen over a period of time.

"Let them compete on who produces the cheapest electricity because what South Africans want, whether they are students at home or households that have to pay for electricity or small businesses or the bigger mines or industries that we have to service is cheaper electricity or cost-effective electricity."

Gordhan said several failings, including corruption, have influenced Eskom's current state.

Minister of Public Enterprises Pravin Gordhan is expected to release a Special Paper on Eskom on Tuesday. The document will detail a comprehensive road-map for the struggling state-owned entity.

Source
eNCA

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