Ramaphosa meets Eskom board on energy reform path

President Cyril Ramaphosa has reported on a successful meeting with the board of Eskom regarding the impending energy reform path.

He emphasised the path as crucial to achieve an affordable, reliable and sustainable electricity supply for all South Africans.

Presidency spokesperson Vincent Magwenya said the government is committed to establishing a fully independent Transmission System Operator (TSO), with ownership and control of transmission assets.

This is to create a level playing field for competition and to unlock investment in the electricity sector, he said.

“The implementation of the reforms is being developed by the Eskom Restructuring Task Team (ERTT), which will oversee the process, and includes representatives of the Presidency, National Treasury, the department of electricity and energy, Eskom, and the National Transmission Company South Africa [NTCSA].”

Magwenya said Ramaphosa further emphasised that the TSO will remain state owned as a strategic national asset serving the public interest.

“In response to matters of concern raised by the Eskom board chairperson, Mr Mteto Nyati, President Ramaphosa reiterated government’s commitment to continue working closely with Eskom, the NTCSA and other stakeholders to ensure that the reform is implemented in a manner that preserves Eskom’s financial position, ensures that the TSO is able to invest in expanding and strengthening the transmission network, and engages lenders and funders in a transparent and responsible manner.”

According to the presidency, the board chairperson confirmed their strong support for the policy direction determined by the government and indicated it was committed to ensuring continued alignment between the board and shareholder in this regard going forward.

“The August 27 meeting followed a recent engagement between President Ramaphosa and the leadership of the National Union of Mineworkers, and was in line with the president’s commitment to continued engagement with all affected parties throughout the process.”