Home Economy Cosatu does not support idea of Eskom splitting

Cosatu does not support idea of Eskom splitting

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The Congress of South African Trade Unions (Cosatu) stood against the proposal to divide Eskom into three separate but state-own entities. According to a statement made on Tuesday, that decision would not further provide any help for the public utility in solving its financial and operational issues.

“When you unbundle and turn debt into equity, as they say, we [Cosatu] view that as part of retrenchment. Even if you don’t pronounce that you’re going to restructure or privatise, we view it as privatisation because you are going to invite private ownership.”

The idea of splitting was voiced last week by a task team that consists of sector specialists and experts. The first of three companies will reportedly operate Eskom’s power stations and will be responsible for its proper operations, while the other two will own and operate the national grid.

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