New Eskom boss cautions against rushing unbundling | IOL Business Report

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Eskom's new chief executive said on Sunday that a plan to split the loss-making power utility should not be rushed. busrep

JOHANNESBURG - Eskom's new chief executive said on Sunday that a plan to split the loss-making power utility should not be rushed, because risks associated with the process need to be assessed and managed properly. President Cyril Ramaphosa announced last year that Eskom would be split into units for generation, transmission and distribution, as part of plans to overhaul the country's power sector and open the industry up to more competition.

A government paper showed in October that Pretoria plans to set up a transmission unit within Eskom by the end of March and complete the legal separation of all three units in 2022. But in an interview with eNCA TV on Sunday, Andre de Ruyter said while Eskom was committed to a restructuring of the power industry as set out in the government paper, the utility wanted to carefully manage risks associated with the process.

“What we are careful of is with a precipitous unbundling to create risks that may end up causing us to have a less stable system,” said De Ruyter, who took charge of Eskom on January 6.

 

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