The Eskom restructuring task team has until the end of this month to present its high-level report on the establishment of an independent, state-owned Transmission System Operator (TSO).
The task team was expected to present a high-level report by the end of May. However, the deadline was extended to the end of June “in order to ensure that the proposed approach can be fully detailed and considered through the relevant governance structures”, the Presidency said in a statement on Monday, June 8.
In April, the Eskom restructuring task team was declared operational. A high-level restructuring proposal was expected by the end of May and a detailed implementation plan expected by the end of August.
The restructuring work is being undertaken in two phases:
- The first phase, now expected to be completed by the end of June, will produce the high-level proposal for establishing the TSO.
- The second phase is expected to take a further three months and will include a detailed implementation plan and timelines for completing the restructuring.
According to the Presidency, the task team must develop a proposal and implementation plan for an independent, state-owned TSO separate from Eskom that will “assume ownership and control of transmission assets, operate the electricity market, enable transmission investment at scale and provide non-discriminatory access to the grid”.
The terms of reference also require the restructuring process to “ensure that Eskom is not worse off than its current financial position following the restructuring and that the TSO is financially sustainable”.
The Electricity Regulation Act provides for the establishment of the TSO by “no later than” December 31, 2029.
“I am encouraged by the speed and diligence with which the task team has taken forward this important task. The establishment of a fully independent transmission company is a critical reform, which will support the introduction of a competitive electricity market,” President Cyril Ramaphosa said.
