Just in: ANC will “introduce a new power provider” to rival Eskom

Mining Minister Gwede Mantashe may have just dropped the biggest bombshell regarding Eskom’s future that we have heard in years. The ANC Cabinet member has told the crowd at the 2020 Mining Indaba that the government want to start “generating electricity outside of Eskom“. The utility currently has Mzansi on a 21-hour, Stage 2 load shedding schedule until Thursday.

Government to introduce a “new power provider”

It’s a landmark shift in policy from the government, who have often painted Eskom as an entity that is too big to fail. Mantashe’s comments mark a wildly different position to what we’ve seen before. The ANC are also saying they want independent power producers (IPPs) to come forward and invest in the project.

More than 95% of South Africa’s power comes from Eskom. But the failing firm, hollowed-out by years of corruption and mismanagement, has a debt bill of R450 billion. After receiving a countless number of bailouts and cash injections, it would seem Mantashe and his friends are willing to make a radical change.

Gwede Mantashe says Eskom will get some competition

The minister said that South Africa “needs a fail-safe”, and promised that a new competitor would push down the price of our electricity bills. Mantashe confirmed that more information on the matter would be made available soon:

“We’ve taken a decision to start a generating company outside of Eskom. We are talking to investors. We need a fail-safe. That competition will also push down price of electricity. The essence is the speed at which self-generation will be able to generate electricity. Let’s move away from licenses and registration”

“We want to take pressure off of Eskom‘s transmission. There’s a problem in people’s attitude toward the regulator. We cannot allow a free for all. Nersa is accelerating processes. You need a ministerial determination and you will get it soon”

Gwede Mantashe

"Eskom is in trouble so we need to take initiative to generate power outside of Eskom. Transmission will be important because it will determine what is possible" – Minister Gwede Mantashe #MiningIndaba2020

— Newzroom Afrika (@Newzroom405) February 3, 2020

• This is a developing story. We will have more on this throughout the day.