South Africa Moves Ahead With Electricity Reform to Strengthen Power Supply and Attract Investment
Pretoria, September 1, 2026: South Africa is reaffirming its plans to overhaul the country’s electricity transmission system as the government seeks to build a more reliable power network, encourage new investment and create a more competitive energy market.
President Cyril Ramaphosa reiterated the government’s commitment to the electricity reform programme during a meeting with Eskom Board Chairperson Mteto Nyati on August 27. The government says the reforms are intended to deliver electricity that is more affordable, dependable and sustainable for households and businesses.
Independent Transmission Operator Planned
A central part of the reform programme is the establishment of an independent Transmission System Operator (TSO).
The proposed operator would have ownership and control of transmission assets, creating a more open environment for competition and potentially allowing additional investment into South Africa’s electricity infrastructure.
Despite its operational independence, the transmission operator would remain state-owned because the government considers the electricity transmission network a strategic national asset.
Eskom Restructuring Team Overseeing Changes
The implementation process is being developed by the Eskom Restructuring Task Team, which includes representatives from the Presidency, National Treasury, the Department of Electricity and Energy, Eskom and the National Transmission Company South Africa.
The task team is expected to coordinate the restructuring process and ensure that the transition protects the financial stability of Eskom while allowing the transmission network to expand.
Investment Seen as Critical
The government believes a stronger and more independent transmission system can help unlock investment in South Africa’s electricity sector.
Expanding the transmission network is particularly important as the country works to accommodate new generation capacity and strengthen the overall reliability of the electricity system.
The government also wants lenders and other funding partners to participate in infrastructure development through a transparent and responsible process.
Balancing Reform With Eskom’s Financial Position
Ramaphosa has stressed that restructuring must not weaken Eskom’s financial position.
The government intends to work with Eskom, the National Transmission Company and other stakeholders to ensure that the reforms allow the transmission system to attract funding while continuing to serve the public interest.
The Eskom Board has reportedly expressed support for the policy direction and committed to maintaining alignment with the government during the implementation process.
Energy Reform Remains a National Priority
Reliable electricity remains closely linked to South Africa’s economic ambitions. A stronger transmission network could support industrial activity, enable additional power generation and improve conditions for businesses considering investment in the country.
The latest announcement signals that Pretoria intends to continue with structural changes to the electricity sector rather than relying solely on short-term measures.
For South Africa, the success of the transmission reform could have consequences well beyond the power industry, influencing economic growth, investment, industrial competitiveness and the country’s long-term energy security.
