President Cyril Ramaphosa has endorsed the Phase I report of the Eskom Restructuring Task Team (ERTT), setting the stage to restructure South Africa’s electricity sector to create competition, unlock investment, reduce electricity prices and ensure energy security for sustained economic growth and job creation.
The report, which was presented to the President on July 30, sets out recommendations for establishing an independent Transmission System Operator (TSO) separate from Eskom.
It included an analysis showing that the restructuring is feasible, in line with international best practice and can be done in a manner that does not compromise Eskom’s financial sustainability. It also highlighted that the growth in municipal arrear debt to Eskom would need to be addressed because of the threat to Eskom and the broader electricity sector and it identified several actions that can be taken immediately to enable the restructuring.
“This report shows how government can ensure that the architecture of the electricity sector can change as the sector continues to evolve, creating the foundation for South Africa's growth. It is welcomed that all the key stakeholders are aligned on this objective," Ramaphosa notes in a statement.
