DA wants answers on Eskom bailout
The DA demanded answers from the government on Monday on what its bailout plan for the embattled state electricity utility Eskom will entail.
Responding to Sunday's announcement by Cabinet that it had approved a funding package to help Eskom with its R225 billion shortfall, Democratic Alliance MP Natasha Michael said she would write to Public Enterprises Minister Lynne Brown and Finance Minister Nhlanhla Nene to request documents relating to the bailout.
"Reports suggest that businesses and consumers are to carry a large portion of the load through increased electricity tariffs," Michael said.
"We need absolute clarity on these tariff increases, the process followed in making this decision and the proportion of the debt to be absorbed directly by taxpayers through increased tariffs."
In its statement, the government said it would support Eskom's application to the National Energy Regulator of SA (Nersa) for tariff adjustments in line with the regulatory process.
In addition, Eskom would receive funding, from leveraging non-strategic state assets, to relieve the effect on consumers and to strengthen the utility's balance sheet.
Nene would provide details in his budget announcements.
Eskom would raise additional debt in the region of R50bn, over and above its original plan of R200bn during the third Multi-Year Determination Period (MYPD 3).
The debt raising would be supported by the "substantial guarantee facility" from government.
(File photo: Gallo images)