Finance Minister Announces Remarkable Transformation of Country’s Electricity System
Written by Neo Molefi on November 1, 2023
Written by: Mapaballo Borotho
Minister of Finance Enoch Godongwana says the country’s electricity system is undergoing an enormous positive transformation.
Godongwana says the country is reaping the fruits of its efforts to reform the electricity sector.
South Africans experienced more power cuts in September 2023 than all the other months in the year, due to high electricity demand.
Godongwana however said constant power cuts would be eased.
He was, on Wednesday, detailing the Medium Term Budget Policy Statement.
The minister said the Eskom debt relief amounted to R250 billion.
“The partial takeover of Eskom’s debt announced in February was done for two main reasons”, said Godongwana.
“The first reason was to ease pressure on the company’s balance sheet and free it to invest in transmission and distribution infrastructure as well as to increase maintenance”.
“The second one was that more than R330 billion of Eskom’s debt was already government-guaranteed, reducing fiscal risk and enhancing long-term fiscal sustainability,” He said.
Godongwana says the Eskom Debt Relief Amendment bill seeks to provide for the reduction of the amount of debt relief available to Eskom, given that the entity does not comply with the national treasury’s conditions.