South Africa will hire advisers in the coming weeks to begin negotiations with lenders on a plan to spin off state-owned power utility Eskom’s transmission subsidiary, according to the head of the National Treasury. President Cyril Ramaphosa has endorsed the creation of an independent transmission system operator, or TSO, outside Eskom as part of efforts to open the electricity market to greater private-sector participation. But carving out the utility’s most profitable division has raised concerns about Eskom’s long-term financial viability and the treatment of government guarantees backing its debt. “From what I understand, there will be need to somehow restructure that debt in order to be able to move ahead.” ADVERTISEMENT: CONTINUE READING BELOWThe government has guaranteed about R330 billion ($20 billion) of Eskom’s debt, according to Pieterse.