Legal threats won't change govt's mind on Eskom reforms, Ramaphosa says
President Cyril Ramaphosa has reaffirmed the government's commitment to the restructuring of the country’s electricity sector, saying the reforms are necessary to secure a reliable, affordable, and sustainable power supply.
Ramaphosa recently endorsed the Phase I report of the Eskom Restructuring Task Team, paving the way for the establishment of an independent Transmission System Operator (TSO).
The president’s remarks come on the back of the National Union of Mineworkers (NUM) announcing it is preparing legal action against Ramaphosa and the state over plans to restructure Eskom, which it says could threaten the utility and the broader economy.
Ramaphosa met Eskom chair Mteto Nyati last Thursday to discuss the government's plans to establish a fully independent Transmission System Operator.
The meeting followed a similar engagement with NUM, as the government continues consultations with stakeholders affected by the restructuring.
The Transmission System Operator will own and control electricity transmission assets, with the government saying this will create a level playing field for competition and help attract investment into the electricity sector.
On Monday, Presidency spokesperson Vincent Magwenya said the government's position on the reforms remains clear.
“The implementation of the reforms is being developed by the Eskom Restructuring Task Team, which will oversee the process, and includes representatives of the Presidency, National Treasury, the Department of Electricity and Energy, Eskom, and the National Transmission Company of South Africa.”
-Transmissions Systems Operator state-owned-
Magwenya also stressed that the Transmission System Operator will remain state-owned and will be regarded as a strategic national asset serving the public interest.
The move is part of the government's broader plan to restructure Eskom and separate the different parts of the electricity supply chain.
For consumers, the transmission system is a critical part of how electricity gets from power stations to homes and businesses.
The government confirmed that strengthening this network will be essential as South Africa brings more electricity producers and renewable energy projects onto the grid.
“President Ramaphosa reiterated the government's commitment to continue working closely with Eskom, the NTCSA, and other stakeholders to ensure that the reform is implemented in a manner that preserves Eskom’s financial position,” Magwenya said.
“Ensures that the TSO is able to invest in expanding and strengthening the transmission network and engages lenders and funders in a transparent and responsible manner.”
Mangwenya reiterated that the president also wants the TSO to have the capacity to invest in expanding and strengthening the transmission network.
The Eskom board has confirmed its support for the government's policy direction and is committed to maintaining alignment with the shareholder as the reforms progress.
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