Eskom to get R69 Billion Bail Out Over Next 3 Years – Treasury

South Africa will inject 23 billion rand ($1.63 billion) a year over the next three years into state power utility Eskom but will NOT take on 100 billion rand of debt as requested by the struggling firm, the national budget showed on Wednesday.

Pylons carry electricity from a sub-station of state power utility Eskom outside Cape Town in this picture taken March 20, 2016. REUTERS/Mike Hutchings/File Photo

The Treasury said the first step in a plan announced by President Cyril Ramaphosa this month to split Eskom into three entities will be to transfer a portion of the utility’s assets to a new transmission subsidiary that will invite equity partners to provide capital.

Further financial support to Eskom would depend on the country’s economic growth, electricity tariffs and the implementation of the company’s strategy, the Treasury said in its 2019 budget statement.

($1 = 14.1244 rand)

Source: Reuters

(Reporting by Olivia Kumwenda-Mtambo, Wendell Roelf and Mfuneko Toyana; Editing by Joe Brock)