Ramaphosa: Energy department will oversee Eskom

South African President Cyril Ramaphosa said the energy
department will take over responsibility for overseeing state utility Eskom, which has been failing to meet the nation’s power demand
since 2008.

The change will be in line with a resolution adopted by the
governing African National Congress at its national conference last week, which
specified that state companies operating in specific economic sectors should be
overseen by the relevant government departments. That could potentially signal
a dissolution of the Department of Public Enterprises, which oversees Eskom,
logistics company Transnet and several other entities.  

“It is a clear mandate from conference,” Ramaphosa
told reporters at a media event in Johannesburg on Monday.

“The resolution
will be implemented,” and the government will decide how and when it will
be done, he said. 

Eskom, which supplies more than 90% of South Africa’s
electricity, has been at the epicenter of a national energy crisis, because its
old and poorly maintained plants can’t generate adequate power to meet demand.
It subjected the country to a record 205 days of rolling blackouts last year,
which stymied economic growth and investment. 

The government has already announced plans to split the
nearly century-old company into three units and take over part of its debt to
try and make it financially sustainable. 

Public Enterprises Minister Pravin Gordhan has prioritized
anti-corruption measures at Eskom and defended outgoing Chief Executive Officer Andre De
Ruyter. A change in the oversight of the company may raise concerns among some
investors as Gwede Mantashe, the energy minister, has been opposed plans to
transition the economy to green energy — even though Ramaphosa advocates doing
so — and been a vocal critic of De Ruyter’s performance. 

Several previous resolutions taken years ago by the ANC are
still works in progress, and Ramaphosa warned that the party’s latest policy
decisions will take time to implement.