Parliament - The Democratic Alliance (DA) on Friday welcomed the splitting of Eskom into three separate units, but said this has not gone nearly far enough as the ruling African National Congress (ANC) would still have a stranglehold on the generation unit.
Speaking during the State of the Nation address (Sona) on Thursday night, President Cyril Ramaphosa said Eskom would be split into three separate entities as part of new business model the cash-strapped electricity utility's would need to develop.
"To bring credibility to the turnaround and to position South Africa’s power sector for the future, we shall immediately embark on a process of establishing three separate entities – Generation, Transmission and Distribution – under Eskom Holdings," said Ramaphosa at the time.
However, on Friday, DA spokesperson on public enterprises, Natasha Mazzone, said the intention to stimulate competition in the generation sector of Eskom will be limited because they would not be wholly independent entities as each entity would have the same holding board of the holding company.
Mazonne said as a result, preference and influence will still be possible within the holding board structure.