Minister Gwede Mantashe announces plan to create rival for Eskom

Minister Gwede Mantashe announces plan to create rival for Eskom

- Eskom is suffering from operational woes, financial issues and mismanagement and apparently SA is exploring other options

- Minister Gwede Mantashe announced a new power generating company is in the pipeline

- Mantashe called on industry to collaborate with the government in the creation of this new entity

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South Africans across the nation have been feeling the impact of the crisis at Eskom with the return of load-shedding.

But Mineral Resources and Energy Minister Gwede Mantashe has announced the light at the end of the tunnel.

The politician revealed that a new power generating company, separate from the embattled power utility, is in planning stages.

READ ALSO: Eskom CEO Andre de Ruyter warns Mzansi: Expect more load-shedding

Speaking during the Mining Indaba, Matashe commented on the new endeavour:

“"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 the price of electricity.There is going to be a separate entity to Eskom, but the issue is not Eskom or no Eskom, the issue is security of energy supply."

SowetanLIVE reports that Eskom currently generates over 90% of South Africa's electricity. The issues facing the state-owned entity were highlighted during the conference.

While the details of this new plan are vague at the moment, the minister said he would like industry to partner with the state in the endeavour. reported that newly-appointed Eskom CEO Andre de Ruyter confirmed that load-shedding will be a part of life for at least the next two years.

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