Eskom and BLSA Back Independent Transmission Operator with Grid Assets Amid Unbundling Talks
Eskom and Business Leadership South Africa (BLSA) have reached common ground on the long-term structure of South Africa’s electricity reforms, supporting the establishment of an independent Transmission System Operator (TSO) that will own and control the country’s transmission assets.
The agreement follows months of public differences between the two organisations over the restructuring of Eskom and the future ownership of its transmission network, which has assets valued at about R110 billion.
Under the model endorsed by President Cyril Ramaphosa and recommended by the Eskom Restructuring Task Team, the TSO will be established as a separate, state-owned entity outside Eskom.
It will own and control transmission assets and operate the electricity market, helping create a more competitive electricity sector, improve grid access and unlock investment in transmission infrastructure.
Eskom had previously expressed concerns about transferring the transmission assets, particularly the potential implications for its financial sustainability and lenders.
The utility had supported establishing a TSO initially without transferring ownership of the grid assets.
BLSA, meanwhile, argued that an independent TSO with the assets was essential to creating a level playing field as South Africa moves towards a more competitive electricity market.
Following direct and constructive engagement initiated by Eskom chairperson Mteto Nyati, the two organisations have now agreed on the intended end-state of the reform.
Both Eskom and BLSA said they support the government’s electricity reform programme, including the work of the Eskom Restructuring Task Team and the Phase 2 process currently under way.
They also stressed that the transfer must be carefully sequenced to protect Eskom’s financial sustainability, respect the rights of lenders and safeguard South Africa’s energy security.
The organisations acknowledged that disagreements may still arise over how the reforms are implemented, but committed to resolving differences through direct engagement.
The development comes as government continues to push for an independent TSO as part of wider efforts to strengthen South Africa’s electricity system, encourage investment in transmission infrastructure and support economic growth and job creation.
The agreement between Eskom and BLSA therefore represents an important step towards resolving one of the key issues surrounding Eskom’s unbundling, while maintaining a balance between electricity-sector reform and the financial sustainability of the state-owned utility.