Cape Town - Privatisation was not the answer to provide a better solution to the current problems facing Eskom, Deputy President David Mabuza reiterated on Thursday.
Responding to oral questions in the National Assembly, Mabuza said the current choice was to make Eskom a more efficient and effective energy generation and transmission public entity with all the necessary capabilities to ensure security and a consistent supply of energy.
Mabuza said the legal separation of Eskom into three subsidiaries – generation, transmission and distribution – was designed to enable the power utility to manage and improve efficiency, create greater transparency around performance and provide greater protection against corruption and rent-seeking.
“The creation of the new transmission entity is the most important step in Eskom’s unbundling process. Eskom holding will have complete ownership of the transmission entity when it has been established.”
Mabuza said Eskom was on track to split its generation and distribution business by the end of 2022 as outlined in the national energy plan announced by President Cyril Ramaphosa.
“This is to improve its operational and financial performance. This will also fulfil the national energy plan to drive the economy, stimulate re-industrialisation efforts and ensure electricity supply to houses,” he said.
Mabuza insisted that privatisation was not the answer, but the focus should be to get Eskom back to optimal performance by ensuring the entity has sound governance structures and that required skill levels were met at power plant level.
“We take this opportunity to re-assure every South African that we will continue to work hard to ensure that they have access to reliable electricity so that they can realise their needs, development, hopes and dreams that we have set ourselves.”
He told the MPs that plans were under way to bring Medupi and Kusile into operation.
“Bringing Medupi will ease our problems. We are attending to the issues of designs and all challenges that are faced by Kusile and Medupi,” he said.
“I am happy that we are on course to bring Medupi into operation, and lastly Kusile will follow. We will follow the plan as outlined by the president in trying to stabilise our generation capacity,” Mabuza added.
Cape Times