Energy department to oversee Eskom

9th January 2023

By: Bloomberg


Font size: - +

President Cyril Ramaphosa said the energy department will take over responsibility for overseeing state utility Eskom Holdings, which has been failing to meet the nation’s power demand since 2008.

The change will be in line with a resolution adopted by the governing African National Congress at its national conference last week, which specified that state companies operating in specific economic sectors should be overseen by the relevant government departments. That could potentially signal a dissolution of the Department of Public Enterprises, which oversees Eskom, logistics company Transnet and several other entities.

“It is a clear mandate from conference,” Ramaphosa told reporters at a media event in Johannesburg on Monday. “The resolution will be implemented,” and the government will decide how and when it will be done, he said.

Eskom, which supplies more than 90% of South Africa’s electricity, has been at the epicenter of a national energy crisis, because its old and poorly maintained plants can’t generate adequate power to meet demand. It subjected the country to a record 205 days of rolling blackouts last year, which stymied economic growth and investment.

The government has already announced plans to split the nearly century-old company into three units and take over part of its debt to try and make it financially sustainable.

Public Enterprises Minister Pravin Gordhan has prioritized anti-corruption measures at Eskom and defended outgoing Chief Executive Officer Andre De Ruyter. A change in the oversight of the company may raise concerns among some investors as Gwede Mantashe, the energy minister, has opposed plans to transition the economy to green energy — even though Ramaphosa advocates doing so — and been a vocal critic of De Ruyter’s performance.

Several previous resolutions taken years ago by the ANC are still work in progress, and Ramaphosa warned that the party’s latest policy decisions will take time to implement.

“Things in government move very slowly, I have learned,” he said.

Edited by Bloomberg



SAIMC (Society for Automation, Instrumentation, Mechatronics and Control)
SAIMC (Society for Automation, Instrumentation, Mechatronics and Control)

Education: Consulting with member companies to obtain the optimal benefits from their B-BBEE spending, skills resources as well as B-BBEE points


GreaseMax is a chemically operated automatic lubricator.


Latest Multimedia

sponsored by

On-The-Air (17/05/2024)
On-The-Air (17/05/2024)
17th May 2024 By: Martin Creamer
Magazine round up | 10 May 2024
Magazine round up | 17 May 2024
17th May 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?







sq:0.397 0.456s - 208pq - 2rq
Subscribe Now