State-owned power utility Eskom is kicking back against government instructions to sell off some of its power stations.
The South African government has said that Eskom needs to sell off assets, including some of its coal-fired power stations, before receiving further bailouts to help deal with its R392-billion debt.
Finance department director-general Dondo Mogajane told Rapport that they hadn’t set any specific targets Eskom must meet before government restructures or takes over its debt. While Eskom claims that no one wants to buy its ageing power stations, Mogajane said they believe there are buyers, especially from countries like China.
Energy analyst Mike Rossouw said Eskom’s management is misleading politicians to avoid selling its older, more expensive power stations.“Eskom is refusing to acknowledge that the costs of running its old power stations simply don’t make it worthwhile to cling to them,” stated Rossouw.
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