Under competitive pressure, Eskom can crack open its potential

Business

Under competitive pressure, Eskom can crack open its potential

Splitting Eskom into three separate entities is not a sufficient step, but it is necessary

Anton Eberhard

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...

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