South Africa President Ramaphosa approves report to establish independent electricity TSO

President Cyril Ramaphosa has endorsed the Phase I report of the Eskom Restructuring Task Team (ERTT), which recommends creating an independent Transmission System Operator (TSO) separate from Eskom. The reform is intended to introduce competition, attract investment, lower electricity prices and improve energy security, supporting economic growth and job creation.

The report argues the restructuring is feasible and aligns with international best practice without compromising Eskom’s financial sustainability. It flags the rise in municipal arrears as a risk and proposes immediate actions such as tighter credit controls, rollout of smart meters, Distribution Agency Agreements, stricter licence enforcement, and continued implementation of municipal debt relief, metro‑trading services reform and the Electricity Distribution Industry roadmap. Phase II will develop a detailed transaction structure and implementation plan over the next three months.