President Cyril Ramaphosa has reaffirmed his support for Eskom’s restructuring programme, backing the first phase of the power utility’s asset separation as government pushes ahead with long-term electricity sector reforms.
Speaking on the restructuring process, Ramaphosa said separating Eskom’s electricity transmission business is a crucial step towards creating a more efficient, financially sustainable and reliable power system. The move forms part of government’s broader plan to modernise South Africa’s electricity market and improve energy security.
The President also stressed that addressing the billions of rand owed to Eskom by municipalities remains essential to securing the utility’s long-term financial future. Municipal debt has continued to place significant strain on Eskom’s finances, limiting its ability to invest in infrastructure maintenance and expansion.
The first phase of the restructuring focuses on establishing an independent transmission entity responsible for managing the national electricity grid. Government believes this will encourage greater competition, improve transparency and make it easier for independent power producers to supply electricity to the grid.
Ramaphosa said the reforms are intended to strengthen South Africa’s energy sector while ensuring a more resilient electricity supply for households, businesses and industry.
Energy analysts have described the separation of Eskom’s transmission business as one of the most significant structural reforms undertaken since the utility was established. They say the success of the restructuring will depend on continued investment, effective governance and progress in resolving Eskom’s financial challenges.
Government has reiterated that the restructuring process is designed to improve operational efficiency while maintaining reliable electricity services for consumers across the country.
