By JOHANNESBURG — South African President Cyril Ramaphosa has reaffirmed the government’s unwavering commitment to its sweeping energy sector restructuring, positioning the rapid implementation of power grid reforms as the sole path toward securing an affordable, reliable, and sustainable electricity supply for the country.
In a pivotal meeting on Thursday, 27 August 2026, with Eskom Board Chairperson Mteto Nyati, the President underscored the state’s intent to establish a fully independent Transmission System Operator (TSO). The new entity will own and control the nation’s bulk transmission assets—a move designed to dismantle monopolistic bottlenecks, enforce a level playing field for private power generation, and mobilize desperately needed capital investment into South Africa’s grid infrastructure.
Addressing concerns over the strategic direction of public infrastructure, President Ramaphosa clarified that despite the opening of the energy market to private competition, the TSO will remain entirely state-owned as a national strategic asset operated in the public interest.
The structural overhaul is being directed by the Eskom Restructuring Task Team (ERTT). This multi-agency body comprises key decision-makers from The Presidency, National Treasury, the Department of Electricity and Energy, Eskom, and the National Transmission Company South Africa (NTCSA).
The meeting comes at a delicate time for state utility Eskom, whose balance sheet remains fragile as it navigates structural unbundling. Responding directly to operational and financial concerns raised by Mr. Nyati, President Ramaphosa promised targeted, cross-departmental coordination to safeguard Eskom’s solvency throughout the transition.
Key priorities for the government and Eskom include:
- Ensuring the newly established TSO has sufficient borrowing capacity to fund network expansion.
- Accelerating grid capacity upgrades to connect new renewable and private generation projects.
- Engaging transparently with international lenders, bondholders, and commercial funders to prevent debt covenant breaches or rating downgrades.
- Maintaining direct alignment between the Eskom Board, the NTCSA, and state shareholders.
Confirming the utility’s position, Mr. Nyati assured the President of the Board’s unified support for the government’s policy trajectory, committing to strict alignment between Eskom’s executive leadership and its state shareholder.
The high-level talks follow recent consultations between President Ramaphosa and the National Union of Mineworkers (NUM). As the government pushes forward with unbundling, managing trade union anxieties regarding job security and energy sovereignty remains critical to preventing industrial friction in the mining and energy corridors.
By reinforcing political backing for the TSO, the Presidency aims to signal regulatory certainty to institutional investors, signalling that South Africa’s structural energy transformation remains firmly on track.
