Eskom's new CEO warns against hasty unbundling of firm

President Cyril Ramaphosa announced last year that Eskom would be split into units for generation, transmission and distribution, as part of plans to overhaul of South Africa's power sector and open the industry up to more competition.

A government paper showed in October that Pretoria plans 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 an interview with eNCA television on Sunday, Andre de Ruyter said 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," said de Ruyter, who took charge of Eskom on January 6. "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 added.

Starting well this CEO👌

Unathi_Kwaza Can you say that again please in English or at least layman's terms

Unathi_Kwaza Did he say “capital gains tax”. Noob question: What capital gains could possible be taxed in a company as indebted as Eskom?

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