Electricity traders in South Africa have called on the government to publish a clear timeline and define the final structure for the separation of the transmission business from Eskom, as part of the country’s ongoing power sector reforms.
This is contained in a report commissioned by the South Africa Electricity Traders Association (SAETA), which represents a growing group of private power traders operating in the country’s evolving electricity market.
The report, prepared by research firm Kruthum, argues that while reform steps have been announced, clarity is still needed on how the restructuring of Eskom will be completed.
“Eskom Holdings’ unbundling is central to electricity reform and requires a clearly defined and credible end state with defined timelines for achieving this,” Kruthum wrote.
It added that the process must outline “the future role of Eskom Generation as its fleet declines, separation of commercial interests from network and system operations and a sustainable balance sheet path.”
Eskom is being restructured into three units which are generation, transmission and distribution under a holding company structure.
The aim is to open the market to private suppliers after more than a century of Eskom’s dominance.
This follows President Cyril Ramaphosa’s recent announcement that the country would establish a fully independent, state-owned transmission entity separate from Eskom
Speaking during a national address, Ramaphosa said the new company would own and operate grid assets and oversee the broader electricity market.
He also disclosed that a task team under the National Energy Crisis Committee had been assigned to drive the restructuring and submit a report within three months with clear implementation timelines.
Busisiwe Mavuso, CEO of Business Leadership South Africa, said the structure had raised questions about the government’s commitment to reforms.
“This issue has caused major concern, with international investors and local business leaders starting to question the government’s commitment to the reform programme,” she said.
SAETA’s report emphasizes the need for details on how and when the transmission of entity independence will be implemented.
Traders seek clear rules for a competitive market
Meanwhile, SAETA’s members include Discovery Green, Etana Energy and Mainstream Renewable Power, among others active in electricity trading.
The association said reforms should go beyond structural announcements and be backed by cabinet-approved policy, finalised electricity pricing frameworks and detailed trading rules.
Clarity on Eskom’s future role, the report noted, would help “manage the transition fairly, protect security of supply and align public support with improved operational and financial performance rather than ongoing cost shifting.”
The traders’ position shows a broader shift in the sector. Over the past year, Eskom has stabilised the grid after prolonged periods of load shedding that constrained economic activity.
Meanwhile, private renewable energy producers have expanded generation capacity under regulatory changes that allow companies to build and trade electricity more freely.
However, market participants say that as coal-fired plants are gradually retired and new suppliers enter the system, the governance of the grid becomes more critical.
Balancing reform, debt and future generation
Beyond the transmission split, the report calls for clarity on Eskom Generation’s long-term role as parts of its coal fleet decline. It also shows the need for a sustainable balance sheet path for the utility, which carries significant debt.
Eskom’s unbundling process has experienced delays over the years. The latest policy shift on transmission is seen as a decisive step, but traders argue that implementation timelines will determine whether reforms achieve their intended outcome.
Currently, the utility operates the national transmission grid and much of the distribution network, making it Africa’s largest utility monopoly.
The government has previously indicated that creating a separate transmission entity could cost about $22 billion.
For SAETA and its members, the focus is now on execution. The association said that a defined roadmap endorsed by cabinet would provide certainty to investors and market participants navigating the transition.
