Eskom Expects Clarity on Transmission Unit Start Early This Year
South African power utility Eskom Holdings SOC Ltd. expects clarity early this year around the start of its independent transmission unit, which still awaits license approvals and the sign-off of creditors.
Separating the business, with generation and distribution arms to follow, is part of the company’s strategy to return to profitability. Eskom signed a legally binding agreement with the new subsidiary, though a number of steps remain before the process is complete.
“A more definitive time line toward operationalization of the new transmission company will be finalized early in the new year following engagements between Eskom, government, and other key stakeholders,” Eskom said Friday in a reply to questions.
Among the remaining steps is regulatory approval of electricity licenses for the new transmission company, which could take up to 120 days, according to the utility. The consent of lenders and creditors is also needed to complete the process.
©2022 Bloomberg L.P.