Medium-Term Budget Policy Statement; Unbundling of Transmission Division
1 November 2022
Eskom Holdings SOC Ltd (“Eskom”) welcomes the statements made in the MTBPS relating to a prospective debt relief solution for Eskom.
Addressing Eskom’s debt levels is a key component to the turnaround plan envisaged under the Department of Public Enterprises’ ‘Roadmap for Eskom in a Reformed Electricity Supply Industry’ (“DPE Roadmap”) and, as noted in the MTBPS, a debt takeover by Government (together with other reforms at Eskom and in the South African electricity sector) will ensure the long-term financial sustainability of Eskom. The implementation of a debt relief solution and such reforms to the electricity sector will allow Eskom to undertake the much needed capital and investment programmes to ensure the stability and security of supply of electricity in the country without relying on further Government bailouts.
As the Minister of Finance noted in the MTBPS, the Government is working to finalise details of the proposed solution–including the quantum of proposed relief, the relevant debt instruments to be included, and the method for effecting the transaction–and it intends to provide further details in its 2023 Budget. Eskom looks forward to working closely and collaboratively with the Government in the coming weeks in order to develop a solution that ensures Eskom is restored as a financial independent, transparent and operationally efficient company.
Eskom very much appreciates the ongoing support and cooperation of its investors and stakeholders and will engage and consult with them on the debt relief solution at the appropriate time.