S&P sees Eskom debt solution as key to unlocking restructuring

Ratings agency S&P Global Ratings sees finding a solution to Eskom’s unsustainable debt position as potentially key to meeting the timelines proposed for the broader restructuring of the State-owned utility into three units of generation, transmission and distribution – an unbundling that is also viewed as necessary for reforming South Africa’s electricity supply industry and attracting much-needed private generation investment. Speaking during a virtual update on South Africa on Tuesday, corporate ratings director Omega Collocott said the restructuring was progressing “slowly”, but had been negatively affected by the disruptions associated with the Covid-19 pandemic as well as operational difficulties that had resulted in recent bouts of rotational power cuts.