South African utility Eskom’s new strategy to be finalised in February

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The logo of state power utility Eskom is seen outside the Koeberg nuclear power plant near Cape Town, South Africa, March 20, 2016. REUTERS/Mike Hutchings

JOHANNESBURG (Reuters) – South Africa’s struggling state power firm Eskom will finalise its new strategy in February, its Chief Executive Phakamani Hadebe told parliament on Wednesday.

Cash-strapped Eskom is battling to emerge from a period of steep financial decline, during which its debts have ballooned while its electricity sales have fallen.

It implemented controlled power outages this year for the first time since 2015.

The new strategy will assess whether its current business model is sustainable, or whether it should be broken up into separate entities overseeing power generation, distribution and transmission.

In September, Eskom delayed the date at which its strategy would be submitted to its board.

Reporting by Alexander Winning. Editing by Jane Merriman

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