South African Miners Want Restructuring of Power Firm Eskom

South African miners support a restructuring of struggling state power firm Eskom to boost competition in the electricity supply industry, an industry body said on Wednesday, warning that tariff hikes alone would not solve Eskom’s problems, Reuters reported. Top government officials will discuss whether to split Eskom into generation, transmission and distribution units at a cabinet meeting starting on Wednesday as part of efforts to rescue the company from financial crisis. The mining and smelting industry is one of Eskom’s top customers, accounting for around 30 percent of electricity demand in Africa’s most industrialised economy. “Most countries we compete against have electricity supply industries where generation is competitive, there is a state transmission company and some competition in distribution,” Roger Baxter, chief executive of South Africa’s Minerals Council, an industry lobby group, said. “We need Eskom to be made into a much more efficient, cost-effective organisation.” Read more