Eskom on track to split production and transmission by year-end: CEO

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Eskom is on track to split its production and transmission divisions by the end of the year, although some government and regulatory approvals are still pending, its chief executive said on Friday.

President Cyril Ramaphosa announced in 2019 that the indebted company would be split into three divisions – production, transmission and distribution – in order to better run a business that has relied heavily on government bailouts and frequently implements government cuts. nationwide electricity.

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In accordance with the approved plan, Eskom must legally separate its production and transport divisions by the end of December 2021 and the distribution division by December 2022.

“We are on track to meet all of Eskom’s targets for the legal separation of our transport business by the end of the year,” CEO Andre de Ruyter said, while adding that government approvals and regulations were still pending.

The country’s electricity regulator must license the proposed transmission company before it can start operating and Eskom is exploring legal options so that the company can still operate pending the award of the license, said de Ruyter.

For the transmission company to be operational, the country’s electricity regulation law must also be amended, which could take 12 to 18 months, the CEO said, adding that options to overcome the long process are also under study.

Eskom, which had debt of over 400 billion rand at the end of March, operates an aging fleet of 15 coal-fired power plants with a nominal capacity of up to 47,000 megawatts. It meets up to 90% of the country’s electricity demand.


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