https://www.polity.org.za
Deepening Democracy through Access to Information
Home / News / South African News RSS ← Back
Africa|Energy|Engineering|engineering news|Eskom|Financial|generation|Power|Resources
Africa|Energy|Engineering|engineering news|Eskom|Financial|generation|Power|Resources
africa|energy|engineering|engineering-news|eskom|financial|generation|power|resources
Close

Email this article

separate emails by commas, maximum limit of 4 addresses

Sponsored by

Close

Article Enquiry

Gordhan criticises Eskom’s ‘elongated’ restructuring timelines, wants grid company trading from Nov

Close

Embed Video

2

Gordhan criticises Eskom’s ‘elongated’ restructuring timelines, wants grid company trading from Nov

Public Enterprises Minister Pravin Gordhan
Photo by Creamer Media
Public Enterprises Minister Pravin Gordhan

20th September 2023

By: Terence Creamer
Creamer Media Editor

ARTICLE ENQUIRY      SAVE THIS ARTICLE      EMAIL THIS ARTICLE

Font size: -+

Public Enterprises Minister Pravin Gordhan has criticised Eskom’s “elongated” restructuring timeframes and has called for greater urgency and drive from the utility in completing the remaining processes required to enable the independent grid company to begin trading.

Eskom has indicated that the National Transmission Company South Africa (NTCSA), the first of three subsidiaries under the yet-to-be-formed Eskom Holdings scheduled to be operationalised, will begin trading from the start of its new financial year on April 1.

Advertisement

The State-owned utility provided the updated timeframe to Engineering News after the Energy Regulator confirmed that it had approved the transfer of the remaining two licences from Eskom to NTCSA, which was regarded as a key milestone for ensuring its full operationalisation.

However, in a presentation to the Select Committee on Public Enterprises, the Department of Public Enterprises (DPE) indicated that government believed there was potential to expedite the process and for the NTCSA to begin trading on November 1 instead.

Advertisement

The restructuring was severely lagging the initial December 2021 deadline set for the legal separation of Eskom’s generation, transmission and distribution divisions.

“When we have reviewed the progress in recent times, we have brought to the attention of the board of Eskom that we believe that the timelines of the internal teams of Eskom are far too elongated.

“They seem to lack urgency and the necessary drive to complete as many processes as possible during this administration,” Gordhan told the committee during a virtual meeting.

He also stated that government was no longer referring to the restructuring under way at Eskom as “unbundling”, owing to the term’s association with sale or privatisation processes, stressing that all three subsidiaries would remain State owned.

DPE’s Donald Nkadimeng confirmed that a series of actions and approvals were still required before the NTCSA could begin trading, including:

  • the appointment of an independent board, which was said to be close to approval;
  • lender consent, which was initially anticipated by the end of August, but currently expected by the end of September;
  • the transfer of servitudes from Eskom to NTCSA;
  • the transfer of 2 000 staff members;
  • a refinement of the Eskom memorandum of incorporation;
  • The designation of the NTCSA as the buyer of electricity, which required the National Energy Regulator of South Africa’s (Nersa’s) concurrence with a Department of Mineral Resources and Energy determination in this regard;
  • The conclusion of Eskom Holdings Generation as well as the independent power producer licences amendment to allow for NTCSA as the buyer of their electricity;
  • the signing by National Treasury of a Government Support Framework Agreement with the NTCSA; and
  • the completion of the lodging of the NTCSA with the Companies and Intellectual Property Commission.

Despite the extensive nature of outstanding conditions, Nkadimeng indicated November 1 as being the department’s “aspirational” timeline for the NTCSA to begin trading.

He also indicated that the DPE wanted the entire restructuring process to be completed by the end of March, including the operationalisation of the National Electricity Distribution Company of South Africa, which would also require licensing by Nersa, the separation of the Generation Division, and the establishment of a new holdings company, or Newco.

The departmental timelines, Nkadimeng confirmed, were not in line with Eskom’s internal timelines, but reflected the DPE’s view that the process could be expedited.

“Eskom provided their timelines, and we have since indicated to them that there is a need for them to review their timelines,” he said.

EMAIL THIS ARTICLE      SAVE THIS ARTICLE ARTICLE ENQUIRY

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here

Comment Guidelines

About

Polity.org.za is a product of Creamer Media.
www.creamermedia.co.za

Other Creamer Media Products include:
Engineering News
Mining Weekly
Research Channel Africa

Read more

Subscriptions

We offer a variety of subscriptions to our Magazine, Website, PDF Reports and our photo library.

Subscriptions are available via the Creamer Media Store.

View store

Advertise

Advertising on Polity.org.za is an effective way to build and consolidate a company's profile among clients and prospective clients. Email advertising@creamermedia.co.za

View options

Email Registration Success

Thank you, you have successfully subscribed to one or more of Creamer Media’s email newsletters. You should start receiving the email newsletters in due course.

Our email newsletters may land in your junk or spam folder. To prevent this, kindly add newsletters@creamermedia.co.za to your address book or safe sender list. If you experience any issues with the receipt of our email newsletters, please email subscriptions@creamermedia.co.za