SONA 2019: Big changes ahead for Eskom

SONA 2019: Big changes ahead for Eskom

Eskom is going to be split into three separate entities. President Cyril Ramaphosa outlined the need to re-energise the parastatal during his State of the Nation Address speech last night.

Eskom Logo
File Photo

Ramaphosa said government will immediately start on a process to establish three separate entities under Eskom Holdings -- namely, generation, transmission and distribution.

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Ramaphosa did not mince his words when it came to the importance of Eskom being a properly functioning State Owned Enterprise.

The President described security of electricity supply as being absolutely imperative to the country's future prospects.

"Eskom is in crisis and the risks it poses to South Africa are great. It could severely damage our socio-economic and development ambitions."

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He said the power utility cannot continue as is.

ANC deputy secretary, Jessie Duarte says the break-up of Eskom is a step in the right direction.

"We are very happy that we are looking at the stabilisation of energy as a forerunner to development," she said.

Meanwhile, the DA's Mmusi Maimane believes the unbundling of Eskom should have happened years ago - during the Jacob Zuma administration.

"Eskom is putting us at a massive risk. He allowed his cronies to be able to loot at Eskom and when we told him to split Eskom into generation and build capacity, he took his time," said Maimane outside the National Assembly last night.

"So once again, It is an old speech that should have been delivered 10 years ago when we needed immediate action."

Maimane feels Ramaphosa will struggle to find a way to co-operate with his own unions to find a way to implement the change.

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