Parliamentarians have been reassured by Deputy President David Mabuza that there are no intentions to privatise Eskom, the country’s main energy provider.
According to him, “Government policy choices and stances have not evolved to the point where privatisation is considered as an alternative to giving better answers to the present difficulties that are affecting Eskom.”
On Thursday, the Deputy President spoke in the National Assembly in response to requests for oral replies.
Members of political parties with representatives in Parliament asked the Deputy President questions on Eskom, ongoing efforts to stop illicit mining, and the results of the most recent Communal Land Summit.
He said that, in the interests of the economy and the advancement of people, the government is always trying to improve Eskom’s efficiency and effectiveness as a public organisation engaged in the production and transmission of electricity.
Instead, the utility, which still has capacity issues, is at an advanced stage of the unbundling process, which would alter the electrical industry, according to the Deputy President.
“To characterise the present organisational shift taking place inside Eskom as privatisation or the apparent purpose to support it would be erroneous.”
Meanwhile, he said that the administration understood the plight of the populace as the nation continued to experience load shedding because of the failure of an ageing fleet of power facilities.
He said that the State was putting more effort into maintenance and repairs to guarantee improved access to electricity.
He informed lawmakers that the utility’s performance and upkeep of the plant had nothing to do with privatisation or public ownership.
The formal split of Eskom into three subsidiary businesses—generation, transmission, and distribution—is gradually taking place.
The Deputy President claims that this exercise is intended to give Eskom the tools it needs to manage and concentrate on increasing efficiency, increasing performance transparency, and protecting against corruption in order to realise the potential of an independent transmission system and market operator.
Additionally, he promised lawmakers that Eskom Holdings will fully control the new transmission company.
As an independent broker in the electrical market, encouraging capital investment within the sector, and catalysing energy efficiency and costs will be among its main duties.
In the meanwhile, he advised the nation to continue concentrating on bringing Eskom back to its peak performance by making sure the organisation has good governance structures in place and the necessary skill levels at all levels of the power plants.
According to President Cyril Ramaphosa’s National Energy Plan, the utility is on pace to separate its generating and distribution divisions by the end of 2022, he said.
“This will also satisfy the National Energy Plan’s requirements to propel the economy, encourage industrialization, and guarantee the safety of the electrical supply to dwellings. Eskom’s privatisation is not the solution, he said.
By ensuring that the entity’s good governance framework is in place and the necessary skills are fulfilled at the power plant, he thinks the nation is on track to bring Eskom back to performing at its best.
We should use this opportunity to reassure every South African that we will keep working hard to make sure they have access to dependable power so they can meet their requirements and help the country realise its aspirations.
Privatization is not anticipated, he continued.