In October 2006 Cabinet approved the proposal to
create six regional electricity distributors (REDs).
These REDs are to be established as public entities,
accountable to the Department of Minerals and Energy.
Electricity Distribution Industry Holdings (Pty) Limited
is implementing government’s restructuring policy. The
critical next steps include the finalisation of outstanding
policy matters and the drafting of enabling legislation.
Eskom completed the ring-fencing of its operating units
in the prior years, in preparation for the RED formation.
Any further internal preparation is dependent on the
resolution of national policy matters.
In order to minimise any risk to Eskom and the industry,
we have identified, and made transparent, a number of
key enablers; for example, compensation for transfer
of assets and the impact on the Eskom credit rating.
Through national and regional participative structures,
Eskom is interacting with key stakeholders to assist with
related matters where required.