Eskom acting chairperson and CEO Mpho Makwana has again reiterated that the plan to secure a private equity partner for its R142-billion Kusile power station was not a privatisation exercise.

Speaking during the Gauteng leg of the National Energy Regulator of South Africa's ongoing public hearings into the State utility's application for tariff increases of 35% a year between 2010 to 2013, Makwana said that the proposal have been misunderstood through the public participation process.

In fact, Cosatu had specifically rejected the sale proposal as part of any fund raising exercise, labelling it as a form of privatisation, which it rejected.

But Makwana insisted that the State, as Eskom's sole shareholder, as well as its board, had given the executive no mandate to pursue privatisation. Instead, it would seek private equity participation on a project basis to support its fundraising efforts.

Eskom was seeking the tariff increases to part fund its R400-billion capital programme and average yearly capex of R103-billion and to create the balance sheet and income statement conditions to raise nononerous debt.

Makwana indicated that it had only received a mandate to secure private equity for 30% of Kusile, and an option to explore raising the percentage on offer to 49%, to help it close its funding gap.

"Eskom has never raised the option of privatisation," Makwana insisted, adding that the target was to raise R40-billion from private equity.

The utility would need to raise an additional R123-billion in debt over the period, during which time it is still anticipating a funding shortfall of R14-billion.