About R40 billion of debt will be held by the transmission unit, which is expected to be established this year, and R30 billion by the distribution unit, with the balance going to the generation division, Eskom said.Eskom is in dire financial straits because it isn’t generating enough income to cover its operating costs and service its loans.
The government in February agreed to give Eskom three annual advances totaling R184 billion through March 2026 to repay maturing debt and cover interest costs, a move aimed at safeguarding its financial sustainability. Plans to separate the businesses to make them easier to manage have Kusile and Medupi, Eskom’s newest power stations, have been plagued by strikes, mismanagement and equipment defects, resulting in a succession of delays that have exacerbated rolling blackouts.
The creation of a standalone transmission company will still require operating licenses from the regulator and the consent of lenders, processes that could be finalized by the end of August, Rand Merchant Bank analysts said in a note on Thursday. We live in a world where facts and fiction get blurred
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