Under-pressure Eskom gets debt relief
Government will be taking over some of Eskom's debt to relieve the pressure off the utility.
Finance Minister Enoch Godongwana in his budget speech on Wednesday, said they're proposing a debt-relief plan for R254 billion.
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It includes a direct takeover of up to R70 billion of the utility's loan portfolio in 2025/26.
Godongwana told Parliament the move will enable Eskom to invest in transmission and distribution infrastructure.
"It will also allow Eskom to conduct the maintenance required to improve the availability of electricity", he added.
As part of the conditions, Eskom must use the relief to settle debt and interest payment only. The utility will also have to implement the recommendations of a Treasury-commissioned independent assessment of its operations.
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The Southern African Faith Communities Environment Institute has welcomed the plan.
"This will make a big difference in Eskom's capacity to no longer service its own debt but actually focus on delivery, we hope," said executive director Francesca de Gasparis.
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