Johannesburg – Trade union federation Cosatu said on Tuesday that it opposed a proposal to split up Eskom into three different entities, adding that it would not solve the struggling utility’s governance and debt problems.
"We don’t support unbundling as the only option to turn around Eskom," Cosatu Deputy General Secretary Solly Phetoe said at a news conference.
The proposal to split Eskom into three separate firms was made by a task team appointed by President Cyril Ramaphosa at a meeting with members of the ruling African National Congress, Phetoe said.
Eskom is to post a R20.1 billion loss for the financial year to March from the R15bn the embattled power utility forecast at its mid-year results.
Eskom chief financial officer Calib Cassim said while the utility managed to curb operational costs, its overall expenses widened during the period.
He said this was why Eskom had escalated its application to the National Energy Regulator of South Africa from 45 to 48 percent over the next three years. Higher plant maintenance costs and the increased use of diesel had added to the expenses.
Reuters and Business Report