Under competitive pressure, Eskom can crack open its potential
Splitting Eskom into three separate entities is not a sufficient step, but it is necessary
The debate over whether it makes sense to restructure SA’s national power utility is in effect over. In a special paper released this week, the government has outlined a road map for Eskom in a reformed electricity supply industry.
Eskom will cease to exist in its current form. Electricity transmission, system operation and market functions will be transferred to a separate company. Competition in power generation will be encouraged. At a later stage, the division currently responsible for electricity distribution and customer sales will also be moved to a separate entity.
The first milestones have been set: by March 2020 a transitional board for the transmission entity needs to be in place and functional unbundling completed. Legal separation will be completed in 2021...