South Africa is considering establishing a second state-owned utility to compete with Eskom

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Date:15 July 2022 Author: Juandre

In order to lessen the risk posed by Eskom’s shortcomings, the country is seriously contemplating the construction of a second state-owned power provider.

On the third day of the SACP’s elective congress, President Cyril Ramaphosa delivered a statement of support on behalf of the ANC, noting that the plan was first put forth by Energy and Mineral Resources Minister Gwede Mantashe after the power company forced the nation into stage six load shedding, according to news24.com.

Mantashe’s suggestion, according to Ramaphosa, is a good one. “Consider China. It has a variety of state-owned energy companies that compete with one another to keep the cost of electricity significantly lower.”

Also read: Relief as Eskom plans to reduce loadshedding

“One firm taking on the task of providing energy to the entire country creates a significant risk and Eskom has been a monopoly for over 100 years. If it (Eskom) fails, it becomes a bizarre failure for the entire nation, “he stated.

 

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