South African President Approves Landmark Electricity Sector Restructuring Report
Pretoria, The Gulf Observer: South African President Cyril Ramaphosa has approved a landmark report by the Eskom Restructuring Task Team (ERTT), paving the way for a comprehensive restructuring of the country’s electricity sector aimed at enhancing competition, attracting investment, reducing electricity costs, and strengthening long-term energy security.
The report outlines a framework for establishing a fully independent state-owned Transmission System Operator (TSO), separate from Eskom, which is expected to serve as the foundation for a competitive wholesale electricity market capable of delivering reliable and cost-effective electricity supplies.
President Ramaphosa welcomed the report, describing it as a significant step toward modernising South Africa’s electricity architecture to support economic growth, investment, and job creation. He noted that the alignment of key stakeholders behind the reform agenda reflects a shared commitment to transforming the country’s energy sector.
According to the Presidency, the report confirms that the proposed restructuring is both feasible and consistent with international best practices while safeguarding Eskom’s financial sustainability. It also highlights the urgent need to address growing municipal debt owed to Eskom, which poses a significant risk to the utility and the broader electricity sector.
The second phase of the reform process will begin immediately and continue over the next three months, focusing on developing a detailed implementation plan and transaction structure. The report also recommends a coordinated action plan to curb municipal arrears through stronger credit controls, expanded smart meter deployment, stricter licence enforcement, and continued implementation of existing debt relief and electricity distribution reform programmes.
Among the immediate measures endorsed are strengthening the operational independence of the National Transmission Company of South Africa (NTCSA), initiating tariff unbundling, clarifying payment mechanisms within the restructured market, and enhancing governance by ensuring independent leadership and regulatory oversight of the transmission operator.
The reforms form part of South Africa’s broader strategy to modernise its electricity sector, improve market efficiency, and create a resilient energy system capable of supporting sustained economic development.
