How privatisation of Eskom can stop its apocalyptic effect on the economy

Privatisation can unlock Eskom’s potential, according to Neeraj Sanjay Mense, a Senior Industry Analyst at Frost & Sullivan.

The suggestion is to split the struggling utility into generation, distribution and transmission.

The way Eskom operates currently differs substantially from highly successful models that utilities have embraced globally.

Mense expects Eskom to successfully introduce winning features such as “customer as a supplier”, “microgrids” and “demand side management” only once privatisation and unbundling take effect.

Eskom is having an apocalyptic effect on the economy.

Privatising and splitting Eskom into separate generation, transmission and distribution entities would directly benefit the end users and the economy, says Mense.

Numerous examples globally show how, if we can bring electricity prices under control, we can expect increased economic growth.

The Money Show’s Bruce Whitfield interviewed Mense.

Listen to the interview in the audio below (and scroll down for quotes from it).

There is no free market [current structure of Eskom]… you’re not entering into competition…

Neeraj Sanjay Mense, Senior Industry Analyst - Frost & Sullivan

Electricity tariffs would be more competitive…

Neeraj Sanjay Mense, Senior Industry Analyst - Frost & Sullivan

It’s the future of the electricity generation industry… We are speaking about changing the structure of the electricity generation industry in South Africa… We’re not talking about job losses…

Neeraj Sanjay Mense, Senior Industry Analyst - Frost & Sullivan

Eskom is too big to fail… the focus should be on making the entire system more efficient… it won’t happen overnight…

Neeraj Sanjay Mense, Senior Industry Analyst - Frost & Sullivan

If you’re looking at its debt… a long-term strategy should be put into place… Eskom needs to change with the times…

Neeraj Sanjay Mense, Senior Industry Analyst - Frost & Sullivan

Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning:

Subscribe to our Business Wrap Newsletter


This article first appeared on 702 : How privatisation of Eskom can stop its apocalyptic effect on the economy


Recommended

by NEWSROOM AI
Read More
How to plan succession in a small business

How to plan succession in a small business

Small business guru Pavlo Phitidis advises on dealmaking and succession from founder to successor through a management buy-out.

How to best save and invest for your children

How to best save and invest for your children

What is the best financial gift you can give your children? Personal financial advisor Warren Ingram has a few answers.

Why Shoprite wants to pay Christo Wiese R3.3 billion

Why Shoprite wants to pay Christo Wiese R3.3 billion

Simon Brown on why is Shoprite wants shareholders to approve paying R3.3bn to Christo Wiese for his high-voting shares.

Amcu may soon be dead and buried

Amcu may soon be dead and buried

The Labour Registrar wants to deregister Amcu. Ray White interviews Phetheni Nkuna, a Senior Associate at Hogan Lovells.

Eskom took South Africa to the brink of collapse for 72 hours late in March

Eskom took South Africa to the brink of collapse for 72 hours late in March

Nobody seemed to notice and those at the helm ensured it stayed that way, says Daily Maverick’s Marianne Merten.

How to quit your job so you can follow your dream

How to quit your job so you can follow your dream

Ever dreamt of just doing it? You may want a few pointers from someone who did. Meet Callan Williamson of Tortilla Modern Mexican.

Popular articles
'Ramaphosa may have to remove Mrwebi and Jiba by tonight'

'Ramaphosa may have to remove Mrwebi and Jiba by tonight'

Freedom Under Law CEO Nicole Fritz says if the president fails to make a decision overnight, they are free to go back to work

Why Shoprite wants to pay Christo Wiese R3.3 billion

Why Shoprite wants to pay Christo Wiese R3.3 billion

Simon Brown on why is Shoprite wants shareholders to approve paying R3.3bn to Christo Wiese for his high-voting shares.

How to quit your job so you can follow your dream

How to quit your job so you can follow your dream

Ever dreamt of just doing it? You may want a few pointers from someone who did. Meet Callan Williamson of Tortilla Modern Mexican.

Retain body heat with an aluminium foil this winter, advises City of Joburg

Retain body heat with an aluminium foil this winter, advises City of Joburg

Khabazela shares what has kept social media abuzz on What's Gone Viral.

Giant ANC billboard with spelling error has social media in stitches

Giant ANC billboard with spelling error has social media in stitches

Khabazela shares tweets and Facebook posts that have gone viral.