Generation unit to take on most of Eskom’s debt
split Eskom into three units envisions most of its R439-billion of debt being allocated to the generation business, which utilised most of the money.
About R40-billion of debt will be held by the transmission unit, which is expected to be established this year, and R30-billion by the distribution unit, with the balance going to the generation division, Eskom said.Government in February agreed to give Eskom three annual advances totalling R184-billion
Eskom is in dire financial straits because it isn’t generating enough income to cover its operating costs and service its loans. Acute breakdowns of its poorly maintained coal-fired plants have set back efforts to restore it to profitability and resulted in record national electricity shortages.three annual advances totalling R184-billion through to March 2026 to repay maturing debt and cover interest costs, a move aimed at safeguarding its financially sustainability.
The creation of a standalone transmission company will still require operating licences from the regulator and the consent of lenders, processes that could be finalised by the end of August, Rand Merchant Bank analysts said in a note on Thursday. “The debt allocation is based on where it was raised,” they wrote. —
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Most of Eskom’s R439bn debt to be allocated to generation unitSouth Africa’s plan to split state power utility Eskom into three units envisions most of its R439 billion ($23.6 billion) of debt being allocated to the generation business, which utilised most of the money. Moneyweb EskomDebt
Read more »
Undercovering Eskom corruption | Scopa questions Eskom boardAn Eskom board member says they found out about the private investigation of the utility in January.
Read more »
Cell C says its network migration is done - TechCentralCell C has completed the migration of its network to partner MTN as the mobile operator shifts strategy.
Read more »
Everything you need to know before installing a solar system - TechCentralPromoted | Before investing in rooftop solar, there are several things you should know about the technology and its limitations.
Read more »
South Africa partners with Dutch, Danes on green hydrogen - TechCentralSouth Africa and the governments of the Netherlands and Denmark have launched a $1-billion green hydrogen fund.
Read more »
Smarter print choices make for higher performance - TechCentralPromoted | Trimming printing waste and optimising printing fleets can save your company significant money.
Read more »