Public Enterprises Minister Pravin Gordhan has given an assurance that there is no plan to privatise any of the three Eskom entities of generation, transmission and distribution currently being unbundled in line with a policy initially outlined in the so-called ‘Eskom Roadmap’ of 2019.

In a statement clarifying a letter sent to the Eskom board regarding the restructuring of the distribution company, but which included the words “approval for sale”, sparking speculation that the business was being privatised, Gordhan insisted that the entity would remain fully State owned.

“The reform of Eskom requires the restructuring of Eskom.

“This means establishing three separate companies housing Generation, Transmission and Distribution businesses – 100 percent owned by the State.

“In order to implement the above, corresponding assets need to be transferred from Eskom Holdings to each of the new companies,” Gordhan outlined.

He explained that implementing the reform involved transferring the assets into the

newly established distribution company, which required the consent of both Ministers of Finance and Public Enterprises in line with Section 54 (2), (c) and (d) of the Public Finance Management Act.

“The letter to the board contains the consent of the Minister of Public Enterprises for the transfer of assets from the Holding company to the newly established Distribution company.”

The Minister argued that Eskom’s current structure was no longer suitable to meet the country’s energy needs, given global developments precipitated by both new technologies and the need to respond to the threat of climate change.

“The restructuring process is a crucial part of ensuring energy security in the future for all South Africans.

“The Department of Public Enterprises and government are fully committed to the implementation of the roadmap and in retaining 100% control of these entities,” Gordhan said, describing some of the commentary as misinformation aimed at undermining public confidence in the process.