KEY POINTS
- South Africa has approved a revised strategy to unbundle Eskom and create a competitive electricity market.
- A new independent Transmission System Operator will be established to manage market operations and ensure fair access.
- Government plans a phased transition to attract private investment while safeguarding energy security and Eskom’s financial stability
South Africa has taken another decisive step towards overhauling its troubled power industry, with Electricity and Energy Minister Kgosientsho Ramokgopa approving a revised unbundling strategy for Eskom.
The move is expected to accelerate long-delayed reforms aimed at opening the electricity sector to full competition and reducing the dominance of Eskom.
The minister said on Tuesday in Johannesburg that the plan, endorsed by Eskom’s board, aligns with the Electricity Regulation Amendment Act and marks an important shift in how the country intends to structure generation, transmission and market operations in the years ahead.
He confirmed that transmission infrastructure will remain under the National Transmission Company of South Africa, the Eskom subsidiary already legally separated from the parent company.
At the same time, the government has begun the legal groundwork to establish a fully independent Transmission System Operator, a key institution that will manage system operations, oversee the electricity market and act as the central buyer.
Government pushes phased transition as Eskom seeks stability amid debt, infrastructure strain
The latest development comes after years of difficulty at Eskom, whose operational troubles and significant debt burden once triggered prolonged power cuts that unsettled investors and weighed on economic activity.
Although load-shedding has eased in recent months, analysts argue that the underlying issues from ageing infrastructure to constrained finances still demand systemic reform.
For many in the energy sector, unbundling has long been viewed as essential for improving transparency and attracting private capital. The government’s revised approach seeks to draw in more private investment without undermining Eskom’s financial stability or South Africa’s broader energy security.
Officials insist that the reforms must support a mix of renewable energy and stable baseload power, while ensuring that vulnerable consumers are not priced out of access.
