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Pretoria - The sale of some Eskom assets like power stations is certainly one of the means government is considering to find alternative revenue sources to tariff increases for the power giant, Themba Maseko, the official spokesperson for the Cabinet, said on Wednesday.
Maseko's statement is the first unambiguous indication from government that privatisation of Eskom assets is being considered as an alternative to the massive tariff hikes proposed by the utility to fund its building programme.
Maseko made the remarks at an information session on the Cabinet's three-day lekgotla which began in the Presidential Guesthouse in Pretoria on Wednesday morning.
The electricity crisis and Eskom's funding problems comprise one of the two issues highlighted in the report by the Cabinet's working group prepared for the lekgotla, he said.
He had seen the report. Government's view is that one could not rely only on tariff increases to finance Eskom's construction programme, and that alternative funding would have to be found.
A ministerial task team had been appointed last year to investigate alternative sources of funding for Eskom. The proposals would not necessarily be finalised at the lekgotla - they form part of Cabinet's normal programme, Maseko explained.
In December Eskom's acting chairperson, Mpho Makwana, announced that Eskom was considering selling 30% of Kusile, one of its two big new coal-fired power stations.
According to Makwana, Eskom has a mandate from government to sell 30% of Kusile and this could possibly increase to 49%.
On the strength of this Eskom would be able to reduce its original proposal of 45% hikes over three years to 35%.
AngloGold Ashanti and other large companies came up with a proposal in terms of which Eskom could reduce its proposed increases to 25% should it sell a controlling stake, in other words more than 50%, in Kusile.
The proposal will probably be formally presented to Nersa on Thursday or Friday.
- Sake24.com
For more business news in Afrikaans, go to Sake24.com.