This news aggregator site highlights South African labour news from a wide range of internet and print sources. Each posting has a synopsis of the source article, together with a link or reference to the original. Postings cover the range of labour related matters from industrial relations to generalist human resources.
Reuters reports that the new Eskom chief executive said on Sunday that a plan to split the loss-making state-owned power utility should not be rushed, because risks associated with the process needed to be assessed and managed properly.
President Cyril Ramaphosa announced last year that Eskom would be split into units for generation, transmission and distribution, as part of plans to overhaul SA’s power sector and open the industry up to more competition. A government paper showed in October that the government planned to set up a transmission unit within Eskom by the end of March 2020 and complete the legal separation of all three units in 2022. But in a television interview on Sunday, Andre de Ruyter said that while Eskom was committed to a restructuring of the power industry as set out in the government paper, the utility wanted to carefully manage risks associated with the process. "What we are careful of is with a precipitous unbundling to create risks that may end up causing us to have a less stable system. For us to rush into full legal separation from day one creates a number of risks - transfer of assets, our lenders will be concerned about assets that they have loaned us money against, there could be capital gains tax events that could cost us a lot of money," he indicated. De Ruyter added: "There is a lot of planning that needs to go into the unbundling and restructuring of Eskom. We need to be quite careful on how we implement this not to precipitate all of these risks that we first need to understand, assess and manage them properly."
- Read the full original of the report in the above regard at TimesLIVE
Get other news reports at the SA Labour News home page