The struggling state power company in South Africa owes a total of $23 billion (£19 billion), of which the government says it will assume nearly two-thirds of the debt.
Breakdowns at Eskom’s power plants have recently caused unprecedented power outages that are damaging the country’s economy.
The decision made by the national treasury should free up funds for maintenance, transmission, and distribution.
President Cyril Ramaphosa declared a state of disaster over the energy crisis earlier this month, a move which allows the government to take emergency measures to intervene.
Corrupt practices and poor management have plagued Eskom. Since 2008, it has received bailouts totaling more than $14 billion.
The latest move by the government comes as the outgoing Eskom chief executive, who was due to exit the company next month, leaves with immediate effect.
The company’s board decided on Wednesday that Andre de Ruyter would not be required to serve the remaining time on his notice period.
Mr. De Ruyter had questioned the capacity of the government to address the corruption at the utility company in an interview with a local TV station on Monday February 20.
Author-Roberta Appiah
