Business Report

One of South Africa's biggest electricity reforms has hit a delay

Mthobisi Nozulela|Published
The Presidency has granted an extension to the Eskom Restructuring Task Team,

The Presidency has granted an extension to the Eskom Restructuring Task Team,

Image: Bongani Mbatha /Independent Newspapers

The Presidency has granted an extension to the Eskom Restructuring Task Team, pushing out its deadline to finalise a report on the creation of South Africa’s independent Transmission System Operator (TSO) to the end of June 2026.

This comes as the government continues work on restructuring Eskom, including separating its transmission function from the rest of the utility.

The proposed Transmission System Operator is part of efforts to reform the electricity sector and introduce a more competitive electricity market.

The team was originally due to submit its high-level proposal by the end of May. The team was created in March 2026 following an announcement by President Cyril Ramaphosa during the State of the Nation Address (SONA).

The task team includes representatives from the Presidency, National Treasury, the Department of Electricity and Energy, Eskom, and the National Transmission Company South Africa (NTCSA).

"While the task team was expected to present a high-level report by the end of May 2026, the President has extended this deadline to the end of June 2026, in order to ensure that the proposed approach can be fully detailed and considered through the relevant governance structures," Ramaphosa said.

The president added that the establishment of a fully independent transmission company remained a critical reform to support the introduction of a competitive electricity market and improve long-term energy security and affordability.

 “I am encouraged by the speed and diligence with which the task team has taken forward this important task," Ramaphosa said.

"The establishment of a fully independent transmission company is a critical reform which will support the introduction of a competitive electricity market and ensure a reliable, affordable and sustainable electricity supply to power the economy.” 

IOL previously reported that the National Union of Mineworkers (NUM), has  also voiced its opposition to the proposed transfer of transmission assets to an independent Transmission System Operator (TSO). The union is calling for urgent labour consultation before any further steps are taken.

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