President Cyril Ramaphosa formally endorsed the Phase I report of the Eskom Restructuring Task Team (ERTT) on 30 July 2026, backing recommendations to establish an independent Transmission System Operator (TSO) in a bid to cut costs and secure a reliable electricity supply. The ERTT, chaired by the Director-General of National Treasury, confirmed the plan is feasible without compromising Eskom’s financial sustainability and highlighted the urgent need to address municipal arrear debt, which poses a major risk to the national power system.

Key Recommendations And Implementation Timeline

The ERTT report proposes a clear separation of Eskom’s transmission assets, placing them under a fully independent TSO which would also operate the country’s electricity market. This move is designed to foster a competitive wholesale electricity market and attract private investment, with the intent of delivering more reliable and cost-effective power nationwide. The TSO’s establishment is mandated by the Electricity Regulation Act (ERA) for completion by 31 December 2029; in the interim, its functions are managed by the National Transmission Company South Africa (NTCSA), a subsidiary of Eskom created in July 2024.

The Task Team, whose members include representatives from the Presidency, National Treasury, the Department of Electricity and Energy, Eskom, and NTCSA, first convened in March 2026 to guide this process. The ERTT’s phased approach aims to strengthen the utility’s finances, modernise infrastructure, and resolve the over R60 billion in overdue municipal electricity debt cited as a significant operational risk in the report.

Significance For South Africa’s Energy Future

Eskom’s chronic operational and financial woes have been a source of regular power outages and wider economic disruption, with the restructuring plan seen as a critical intervention to restore stability and long-term energy security. The new TSO will not only control the national transmission grid but will also become the market operator, creating a foundation for genuine competition in electricity supply for the first time in South Africa’s history.

President Ramaphosa, in marking the report’s endorsement, stated: “This report shows how government can ensure that the architecture of the electricity sector evolves in line with international best practice. It creates the foundation for South Africa’s growth, and it is welcomed that all key stakeholders are aligned on this objective.”

The next stage will focus on accelerating the operational independence of the TSO and finalising solutions to the municipal arrear debt challenge. Progress updates are expected from government and Eskom through the remainder of 2026 as the roadmap to 2029 advances.