Eskom Era is About to End

The Eskom era is about to end, and it’s a big deal for South Africa’s power scene. Electricity and energy minister Kgosientsho Ramokgopa has given the green light to Eskom’s updated plan to break itself up, signaling the start of a new chapter for the state-owned power giant.

Eskom is splitting into four separate companies, and one has already gone solo. Ramokgopa pointed out that this move is a major step forward, paving the way for a more competitive electricity market. The new companies are the National Electricity Distribution Company of South Africa (NEDCSA), GenerationCo (GxCo), Eskom Green, and the National Transmission Company South Africa (NTCSA).

NTCSA actually broke away from Eskom back in July 2024, taking over Eskom’s Transmission Operations and now managing the national transmission grid all on its own. The other companies will focus on different parts of the power business: NEDCSA will handle distribution, GxCo will run the power stations, and Eskom Green will focus on renewable energy projects.

Eskom also mentioned a new and independent Transmission System Operator (TSO) will be set up outside Eskom itself. CEO Dan Marokane said this marks the groundwork for making electricity more affordable and competitive by driving more competition, efficiency, and diversity in the market.

The TSO will be a standalone government-owned company, totally separate from both NTCSA and Eskom Holdings, providing clear and fair access to the transmission network. Meanwhile, NEDCSA’s role will be to strengthen distribution networks and eventually separate fully from Eskom once certain financial milestones are met, especially regarding municipal debt.

GenerationCo, or GxCo, will specifically focus on running power generation within the new group setup. Eskom is planning to roll out this unbundling carefully in stages, targeting to finish by 2030. This phased approach will help manage financial, legal, and operational risks while building the necessary skills, systems, and institutions for an open and competitive market.

Eskom has already started engaging with stakeholders to keep everyone informed, keep the power system stable, and support employees through this big change.

Energy minister Ramokgopa told eNCA that the real winners in this shake-up will be electricity consumers. He promised that access to the power grid would be fair and transparent. Right now, there’s worry that Eskom plays both the player and ref, potentially favoring itself or creating unfair rules that hurt others.

To fix this, the new TSO will ensure the playing field is level, aiming to be fully operational by 2029. Ramokgopa emphasized the importance of continuing reforms and bringing competition in a fair way, so ultimately, the people paying for electricity get better options.

With this new setup, customers won’t be locked into Eskom for power supply. Businesses, for example, will have the freedom to choose different providers for generation and distribution. Households might get these options later on, but the goal is more choice and better service for everyone.

The NTCSA, which made its official break from Eskom last year, recently appointed a permanent CEO, Monde Bala. He used to be Eskom’s Group Executive for Distribution and served as interim CEO for NTCSA before getting the permanent job after a thorough recruitment process.

The NTCSA said Bala has shown excellent leadership and a solid understanding of transmission, along with a strong commitment to their goals. NTCSA chair Priscillah Mabelane expressed full confidence in him, looking forward to working with Bala and his team to push their strategic plans forward.

So, while the Eskom era is about to end, it’s opening up a future where South Africa’s electricity market can be more competitive, fair, and reliable for all of us.

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