Solutions for Eskom debt to be tabled in medium-term budget

Godongwana and various ministers who serve in the Energy Crisis Committee briefed the media on Monday at Hatfield in Pretoria.

The briefing follows President Cyril Ramaphosa’s recent address where he announced measures to ensure long- term energy supply in the country.

In his address, Ramaphosa assured that the government is also working on a plan to reduce Eskom’s debt of close to R400 billion.

 The ministers assured South Africans that government is on track to make loadshedding a thing of the past and achieve energy security in the country.

Godongwana acknowledged that the Eskom debt is unsustainable.

"Eskom debt is a big cheque, there is an accepted issue even in the marketplace that debt for Eskom is unsustainable and it poses a risk to the sovereign,”he said.

“To avoid that sovereign risk, the sovereign has got to step in.That principle is agreed upon and when we are going to the cabinet Lekgotla in the first week of September with a proposal we will be dealing with that issue.”

He noted: “What has not been settled at the moment is the quantum of that, how much will be taken by the sovereign. But the principle is there, at the moment both Treasury officials and Eskom officials are developing scenarios which we will tabled before Cabinet.

“The final quantum will be dealt with on the 26th of October in the e Medium Term Budget Policy Statement."

Minister of Public Enterprises, Pravin Gordhan said the procurement of additional energy capacity from neighbouring countries will be finalized in the next month.

"It should be concluded in the next month to bring in anything up to 200MW, but Eskom is also in conversation with them to see if more power could be obtained from the power pool. If those possibilities come through, they will make an announcement in that regard," he said.

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