NCOP passes Eskom Debt Relief Amendment Bill

CAPE TOWN - Struggling power utility Eskom can now spend more to improve operational capacity after the National Council of Provinces' (NCOP) adoption of the Eskom Debt Relief Amendment Bill.

One of the main objectives of the bill is to amend the Eskom Debt Relief Act of 2023 by reducing financial requirements for Eskom for the 2025/26 financial year.

The legislation also proposes that the entire allocation for the year be treated as a loan, which can be converted into equity once certain conditions have been met.

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The NCOP passed the bill at its sitting in Parliament on Wednesday.

The Eskom Debt Relief Amendment Bill was introduced in Parliament by Finance Minister Enoch Godongwana during the tabling of the budget in March.

The amendment bill replaces the R70 billion debt takeover with two direct advances to Eskom totalling R50 billion.

Appropriations select committee chairperson, Tidimalo Legwase, said the bill also provided an additional R10 billion for Eskom in 2028. 

"It converts the entire 2025/26 amount into a loan and lastly, it provides for an allocation for Eskom in the 2028/29 financial year. As of 31st of March, government has disbursed R140 billion in debt relief to Eskom."

The bill will now be sent to the president for assent.