The Governement of South Africa has approved a package to support Eskom, the largest power utility in the country, to ensure a sustainable electricity supply industry. Firstly, government will support Eskom’s application to National Energy Regulator (NERSA) for tariff adjustments to provide Eskom with the revenue and cash flows the utility needs to complete the current programme of building power stations, repay debt and interest thereon. In addition, the Government has decided an equity injection into Eskom to help relieve the impact on electricity consumers, increasing Eskom debt by an additional R50bn (US$4.5bn), over and above its original plan of R200bn (US$18.1bn) during the third Multi Year Determination Period (MYPD 3, 2013/14 to 2017/18). Raising more debt is supported by the substantial guarantee facility available to Eskom from government, which will be used to reduce Eskom’s cost of debt, but also needs to be supported by a sustainable industry, relying on managing costs and raising sufficient revenue to cover these.