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The unbundled utility will lead to lower tariffs
- Eskom to be unbundled into independent utilities
- To promote transparency in the sector
South Africa’s President Cyril Ramaphosa has said that unbundling Eskom will lower electricity tariffs for consumers in the country. In a move to improve an efficient, reliable, and stable electricity supply in the country, Ramaphosa announced the restructuring of state-owned Eskom. Eskom will be unbundled into generation, transmission, and distribution companies. The unbundling of the transmission segment will be complete by December 2021.
The unbundling will ”….improve transparency, increase competitiveness and promote the purchase of the lowest-cost electricity”, Ramaphosa said in his weekly newsletter. ”This is vital at a time when the country is suffering from severe and sustained electricity shortages and where neither Eskom nor the State is able to invest in new generation capacity”, Ramaphosa wrote.
Eskom has in recent times seen an increase in load shedding affecting households and businesses in South Africa.