Eskom in need of a new business plan: Gordhan

Public Enterprises Minister Pravin Gordhan says ailing Eskom is in need of a new business plan.

READ: Gordhan to release special Eskom roadmap paper

Briefing the media on Tuesday on the Special Paper on Eskom, Gordhan says this is due to the cash-strapped utility’s cost structure being greater than its revenue generation.

Eskom is currently in need of a R59-billion bailout in order to survive this and the next financial year following incurring a net loss of R20.7 billion for the year ending March 31, 2019 with its debt sitting at R440 billion while it generates total revenue of about R32 billion.

Minister Pravin Gordhan says ailing Eskom is in need of a new business plan.

Touching on the separation of Eskom into three entities – generation, transmission, and distribution – Gordhan says he expects the separation process to occur from January until the end of March.

The separation will “increase transparency, drive economic growth in the country, drive increased competition in generation, provides a stable robust system and drives compliance with environmental legislation and policy,” he said