President Cyril Ramaphosa has endorsed the first phase of a report by the Eskom Restructuring Task Team (ERTT), paving the way for major changes to South Africa’s electricity sector.
The task team includes representatives from the Presidency, National Treasury, the Department of Electricity and Energy, Eskom and the National Transmission Company of South Africa.
According to the Presidency, the restructuring is aimed at creating a more competitive electricity market, attracting investment, lowering electricity costs and strengthening energy security.
The government says these reforms are expected to support sustained economic growth and contribute to job creation.
Presidential spokesperson Vincent Magwenya said the establishment of an independent Transmission System Operator (TSO) will be central to creating a competitive wholesale electricity market.
“The Independent Transmission Company (TSO) is a key enabler of a successful competitive wholesale electricity market that is expected to deliver reliable and cost-effective electricity,” Magwenya said.
He said the reforms could contribute to increased economic growth, investment and employment.
The restructuring process will be implemented in two phases.
Phase One, which was completed at the end of June, focused on developing a high-level proposal for establishing the TSO.
Phase Two is expected to be completed within three months and will focus on developing a detailed implementation plan, including timelines for carrying out the proposed restructuring.
The government says the process is intended to lay the foundation for a more reliable, competitive and sustainable electricity sector.