South Africa’s Electricity and Energy Minister Kgosientsho Ramokgopa has approved a revised unbundling strategy for power utility Eskom in a major step aimed at opening the country’s electricity market to full competition.
Ramokgopa said on Tuesday that the plan, endorsed by Eskom’s board, sets the stage for restructuring the utility in line with the Electricity Regulation Amendment Act.
Transmission assets will remain under the National Transmission Company of South Africa (NTCSA), a subsidiary of Eskom, while government begins the legal process to establish a fully independent Transmission System Operator (TSO).
The TSO will oversee system operations, market functions and central purchasing, ensuring non‑discriminatory access for all participants and enabling a competitive wholesale electricity market.
“This strategic decision represents a significant advancement towards establishing a competitive electricity market in South Africa,” Ramokgopa said, adding that the approach balances public oversight with affordable pricing, efficiency and supply diversity.
The move comes amid longstanding challenges at Eskom, including chronic load‑shedding that was experienced a few years ago, ageing infrastructure and a debt burden exceeding R400 billion.
Analysts have long argued that unbundling is necessary to improve transparency, attract private investment and diversify generation capacity.
The revised strategy aims to crowd in private sector investment while safeguarding Eskom’s financial stability and national energy security.
The NTCSA’s legal separation has already been completed, laying the groundwork for further reforms.
Ramokgopa said Eskom will implement the strategy in phases to manage financial and operational risks, while government engages regulators, municipalities and organised labour to ensure a stable transition.
He noted that reforms must balance the integration of renewable energy with reliable baseload generation, protecting vulnerable customers and preserving universal access as South Africa advances its just energy transition.
JN/APA