During his State of the nation address President Cyril Ramaphosa announced that eskom will be unbundled into three entities. To deal with generation, transmission and distribution under Eskom holdings.
The utility will undergo a point of turnaround plan and government will step in to support Eskom’s balancesheet, Ramaphosa said.
Ramaphosa says Eskom’s could servlet damage the economy and social development ambitions and we need bold actions.
The consequences may be painful but they could even be more devastating if we delay. The Nationa Union of Metal worker’s General secretary Irvin Jim has opposed Eskom’s split saying “we’ll meet in the street”.
Jim says breaking up Eskom with one agenda to hand it over to private sector through privatisation is criminal “infect it is a new state capture crystalizing in front of our eyes champion by Ramaphosa it is rejected by NUMSA”.
As the split of Eskom into three entities could be the financial relief the entity need it could also mean job loses.
While Trade Union Federation Cosatu said they want commitment by Ramaphosa that the restructuring of Eskom would not results in job loses. DA Mmusi Maimane speaking to the media after the SONA said Ramaphosa had taken a step in the right direction by beginning the break up of Eskom but hasn’t gone far.
The President couldn’t go further into details but the minister of finance minister Tito Mboweni will explain further during his budget speech on the 20th of February during his budget speech on how the process of Eskom will be conducted.
By: Mahlatse Makhafola