South Africa: Eskom Backs Plan For Independent Transmission Operator, Seeks Safeguards For Finances

South African state-owned power utility Eskom has welcomed the government’s decision to establish an independent, state-owned Transmission System Operator (TSO), as proposed by the Eskom Restructuring Task Team (ERTT).

Eskom said its board supports President Cyril Ramaphosa’s vision of an independent TSO that would own the country’s transmission assets at an appropriate stage of the electricity sector reform process.

“The board has a clear fiduciary responsibility to ensure that Eskom remains financially sustainable so that energy security can continue to support South Africa’s economic growth. For this reason, we fully support the pragmatic approach of treating electricity sector reforms as a carefully sequenced process with clear stage gates,” Eskom Board Chairman Mteto Nyati said.

As Phase II of the reforms begins, Eskom said implementation should safeguard the utility’s financial sustainability and address lender requirements, financing arrangements and contractual obligations.

Nyati said establishing an independent TSO would be a significant event for Eskom’s lenders and would require careful engagement as the implementation framework is developed.

“Successful reform and a financially sustainable Eskom are complementary objectives that will help support a stable, sustainable and investment-ready electricity sector,” he said.

Eskom also welcomed the ERTT’s proposal to establish a dedicated workstream to address municipal debt owed to the utility.

“Addressing municipal arrear debt, which has reached 119 billion rand, remains critical to Eskom’s long-term financial sustainability and its ability to meet existing debt obligations,” Nyati said.

He said progress in resolving the debt would be an important consideration in developing a sustainable pathway towards a fully independent TSO.

Eskom said it remains committed to supporting South Africa’s electricity market reforms while ensuring the implementation process strengthens the long-term sustainability of both the utility and the broader electricity sector.