JOHANNESBURG – The intended split of South Africa's cash-strapped power utility Eskom into three separate entitiies will allow for more transparency in its running, but will not do much to solve its financial problems, ratings agency Moody's was reported as saying on Monday.
“The move paves the way for a more transparent group with more clearly allocated revenue and cost between business segments,” news agency Reuters quoted Moody’s as saying in a research report.
"However, in and of itself it does little to address Eskom’s financial challenges."
A copy of the report was not available to African News Agency.
In his state of the nation address to Parliament last Thursday, President Cyril Ramaphosa said Eskom would be divided into Generation, Transmission and Distribution entities as part of a new business model to help turn it around.