KEY POINTS
- Eskom says the NTCSA will own, finance and maintain the transmission grid, while a new independent operator will plan and run the system and market
- The split is part of a five-year reform process aimed at opening grid access and supporting a competitive electricity market
- Eskom argues any perceived overlap reflects different perspectives on the same value chain, not conflicting mandates
Eskom has moved to spell out how responsibilities over South Africa’s electricity transmission system will be divided as the country edges closer to one of the most consequential reforms of its power sector in decades.
The utility said the National Transmission Company South Africa, known as the NTCSA, will remain responsible for owning, financing and maintaining the physical transmission grid, while a new, independent Transmission System Operator will take charge of planning, operating and managing the electricity system and wholesale market.
The clarification follows the approval of a revised unbundling framework under which the NTCSA will stay a wholly owned subsidiary of Eskom Holdings, even as the Transmission System Operator is set to be established as a separate State-owned company outside the group.
The changes are anchored in the Electricity Regulation Amendment Act, which came into effect earlier this year and provides a five-year window for the creation of the independent operator. Policymakers see the move as central to opening the grid to greater competition and private investment by ensuring equal access for all generators.
Yet recent statements by Eskom and the NTCSA had raised questions about whether the two entities’ mandates would overlap, particularly in relation to grid planning, operation and maintenance.
Where planning meets ownership
Eskom said the apparent tension stems from different descriptions of the same value chain rather than a duplication of authority.
According to Eskom, the NTCSA will remain the licensed and regulated owner of the transmission assets within the Eskom group. Its responsibilities will include raising finance, constructing new infrastructure, maintaining existing lines and substations, and executing the Transmission Development Plan, which maps out future grid expansion.
The independent Transmission System Operator, by contrast, will take on what Eskom described as the functional role of transmitter. This will include developing and approving the Transmission Development Plan, operating the power system, running the wholesale electricity market, acting as the central purchasing agency and providing ancillary services such as frequency control and voltage regulation.
Crucially, the operator will also be responsible for granting non-discriminatory access to the grid, a role seen as essential to levelling the playing field as more private power producers enter the market.
Eskom said the NTCSA would implement the operator’s plans through regulated, arm’s-length commercial arrangements, with both entities subject to oversight by the National Energy Regulator of South Africa.
“The apparent overlap arises because both descriptions refer to the same value chain, but from different angles,” Eskom said in its response to Engineering News. “The operator will decide what grid is needed, where and when, and will manage system and market operations, while the NTCSA will be responsible for building, owning and maintaining that grid in line with the operator’s plan.”
The utility added that these complementary roles would be formally set out in legislation, licence conditions and commercial agreements to avoid duplication and ensure clear accountability as the reform process unfolds.
