The endorsement of the first report of the Eskom Restructuring Task Team by President Cyril Ramaphosa provided a clear vision for the independent Transmission System Operator (TSO) and made the policy unambiguous, says business organisation Business Leadership South Africa (BLSA) CEO Busisiwe Mavuso.
An independent grid operator is the only way to build a competitive electricity market that treats all electricity generators equally, brings prices down over time and gives investors the certainty they need to commit capital, she says.
The independent TSO is the foundation of a competitive electricity market. Without it, Eskom controls both generation and the grid, which is the equivalent of letting one airline also control the airports, and private generators cannot compete on fair terms, new investment is constrained and the promise of lower electricity prices remains out of reach.
With the endorsement, the President reinforced that electricity reform must create the foundation for South Africa's growth and the independent TSO is needed to deliver on that commitment.
“The President's endorsement is highly positive for investment. Uncertainty about whether South Africa would follow through on electricity market reform has been a source of concern for independent power producers and large industrial consumers alike. That uncertainty is now substantially reduced. A long-term, sustainable electricity market will emerge, and investors can plan accordingly,” Mavuso says.
