Electron Native

South Africa has gotten a thumbs up. This is because of the timeline for   the execution of her plan to overhaul its power sector by breaking up state utility Eskom. This will happen over the next three years and has been rated “somewhat optimistic,” by Standard & Poor's Global Ratings.   Eskom SA Source: The South African President Cyril Ramaphosa promised in February that he would split Eskimo into units for generation, transmission and distribution, to make the utility more efficient. A government paper released in October set out a vision for a restructured electricity supply industry, where Eskom could relinquish its near-monopoly and compete with independent power producers to generate electricity at least cost. The government 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. S&P said it saw “the reform timeline as somewhat optimistic”, alt...

Moody’s has given a possible solution to South Africa on her financial problems. The Credit rating agency says the country can fund the needed bailout for electric power utility Eskom but it must make more cuts in other areas. Moody's Credit rating Agency Source: Pionline.com   Moody’s made the announcement in a statement released on Thursday, as South Africa prepares its mid-year budget review. With this advice the government of President Cyril Ramaphosa has room to ensure the lights stay on. Eskom, supplies more than 90 percent of the power that earned South Africa its reputation as the most industrialised economy. But lack of adequate financial management and poor billing regime amidst sales decline and mounting has cause it to depend on government bailouts. It is regularly cited by ratings agencies as one of the main threats to South Africa’s creditworthiness and economic growth.