South Africa Issues Eskom Rescue Plan With Debt Burden Unsolved

South Africa unveiled a long-awaited plan to save its debt-stricken power utility, including exposing it to greater competition, lowering fuel costs, increasing renewable-energy output and selling non-core assets, Bloomberg News reported. A policy paper released by Public Enterprises Minister Pravin Gordhan envisions Eskom Holdings SOC Ltd. relinquishing its almost century-old near-monopoly of the electricity industry. As a first step, its transmission business will be hived off next year while remaining under the control of a state holding company, a step that will ease the way for private generators to supply the national grid. “Taking out the transmission entity first, with its own board, is a pragmatic step,” said Anton Eberhardt, a professor at the University of Cape Town Graduate School of Business and the head of a task force that advised the government on ways to fix Eskom. Read more