S. Africa to Announce Eskom Policy after Economic Plan Completed

Paul Vecchiatto

(Bloomberg) -- The South African government will announce its strategy to turn around ailing Eskom Holdings SOC Ltd. after it has finalized a master plan to revive the economy, according to Minister in the Presidency Jackson Mthembu.

Cabinet members held a special meeting Thursday to discuss an economic draft formulated by the National Treasury, Mthembu told reporters in Cape Town. They also discussed a blueprint, known as the Integrated Resources Plan, that maps out the nation’s energy mix for the next two decades, he said.

Eskom, which supplies about 95% of South Africa’s power, has been granted 128 billion rand ($8.7 billion) in state bailouts over the next three years to remain solvent. The government has proposed splitting the utility into generation, transmission and distribution units and is evaluating a range of options to reduce the costs of the debt and improve its performance.

To contact the reporter on this story: Paul Vecchiatto in Cape Town at pvecchiatto@bloomberg.net

To contact the editors responsible for this story: Mike Cohen at mcohen21@bloomberg.net, Hilton Shone

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