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Eskom has welcomed the approval of its revised unbundling strategy by the Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa. The decision represents the next step in restructuring South Africa’s electricity sector and supports the development of a more competitive market.
The approval includes the creation of a new Eskom holding company with several subsidiaries. These include the National Electricity Distribution Company of South Africa (NEDCSA), GenerationCo, Eskom Green, and the already separated National Transmission Company South Africa (NTCSA).
Eskom Green will focus on renewable energy, while NTCSA will continue to own and expand the national transmission grid.
A Step Toward a Competitive Electricity Market
Eskom Group Chief Executive Dan Marokane said the decision strengthens investor confidence and moves the country closer to a competitive electricity market.
He said the approach allows an “orderly transition” while protecting system stability and enabling new generation capacity.
The revised strategy also confirms the establishment of an independent Transmission System Operator (TSO). The TSO will sit outside Eskom and will manage system operations, electricity trading, and transparent grid access.
Aligning With the Electricity Regulation Amendment Act
The changes align with the Electricity Regulation Amendment Act, which sets the framework for a modern and competitive electricity sector. NTCSA will continue its transmission-related functions during the transition.
Eskom says the structure protects financial stability by giving lenders and investors clear policy direction. It also creates room for new energy projects, both public and private.
Building a Modern and Reliable Power System
The restructuring supports South Africa’s broader goals: maintaining baseload power, expanding renewable energy, and protecting vulnerable customers.
Key elements include:
- A fully independent TSO
- NTCSA continuing grid expansion
- NEDCSA strengthening distribution networks
- GxCo operating as a dedicated generation company
- A new TraderCo entering the market
- Eskom Green adding clean energy projects, including a planned 2GW by 2026
Eskom says these steps reflect global best practice, adjusted for the country’s unique energy needs.
Next Steps for Eskom’s Transition
Eskom will now begin phased implementation, with the full transition expected by 2030. The process will include engagement with government, regulators, labour, municipalities, and other stakeholders.
The utility says it will manage the transition carefully to protect system stability and support employees during the restructuring.
