Summary
Distribution’s role is to service the customer through building, operating and maintaining Distribution assets, while also acting in the national interest by actively partnering with the wider industry in resolving Distribution industry issues and enhancing stakeholder relations.
View DetailsIs it working?
To be determined. The distribution company has only been legally unbundled but it has not been officially set up as a subsidiary
Actions
To complete the unbundling of Eskom and setting up of a generation company
Are there plans?
To complete the unbundling of Eskom
Is it on the agenda?
The distribution company has recently been legally separated from Eskom but it is not yet operational and has not been unbundled from Eskom.
Goals
To have a separate distribution company from Eskom
Documents
References
Departments / Govt Institutions
Summary
Distribution’s role is to service the customer through building, operating and maintaining distribution assets, while also acting in the national interest by actively partnering with the wider industry in resolving distribution industry issues and enhancing stakeholder relations.
View DetailsIs it working?
The unbundling has a long way to go and progress appears slow. The distribution company has only been functionally unbundled but it has not been officially set up as a subsidiary. Monde Bala, its group executive was recently seconded to the NTCSA and now Agnes Mlambo is acting head of distribution.
Actions
The process has begun to legally separate but the distribution company but it is still part of Eskom. Then passing of the ERA should also provide further impetus for the unbundling. A big hurdle to overcome is rising municipal debt of roughly R100 billion, which ultimately affects the distribution business and risks it being able to raise further investment. Addressing municipal debt requires working with Treasury to put in place broad strutural changes and potentially legislative reform. Eskom is set to apply for a distribution licence from Nersa as part of its plans to legally separate its Distribution division. The minister will play a key role by appointing a permanent board of directors for Disco. Eskom’s management willmfocus on completing all necessary preparations for the transfer of staff, systems and assets to the newly separated entity, ensuring a smooth and efficient transition.
Are there plans?
Full unbundling still to take place; the distribution company has been functionally separated from Eskom - with separate management and internal accounting structures - but it is not yet operational and has not been unbundled from Eskom.
Is it on the agenda?
Part of the overall energy system reforms. Operation Vulindlela and Necom plan to prioritise distribution reform, though this process is likely to take time.
Goals
To separate the distribution division from Eskom, it will be a subsidiary to the holding company.
Documents
References
Departments / Govt Institutions
Summary
Distribution’s role is to service the customer through building, operating and maintaining distribution assets, while also acting in the national interest by actively partnering with the wider industry in resolving distribution industry issues and enhancing stakeholder relations.
View DetailsIs it working?
The unbundling has a long way to go and progress appears slow. The distribution company has only been functionally unbundled but it has not been officially set up as a subsidiary. Monde Bala, its group executive was recently seconded to the NTCSA and now Agnes Mlambo is acting head of distribution.
Actions
The process has begun to legally separate but the distribution company but it is still part of Eskom. Then passing of the ERA should also provide further impetus for the unbundling. A big hurdle to overcome is rising municipal debt of roughly R100 billion, which ultimately affects the distribution business and risks it being able to raise further investment. Addressing municipal debt requires working with Treasury to put in place broad strutural changes and potentially legislative reform. Eskom is set to apply for a distribution licence from Nersa as part of its plans to legally separate its Distribution division. The minister will play a key role by appointing a permanent board of directors for Disco. Eskom’s management willmfocus on completing all necessary preparations for the transfer of staff, systems and assets to the newly separated entity, ensuring a smooth and efficient transition.
Are there plans?
Full unbundling still to take place; the distribution company has been functionally separated from Eskom - with separate management and internal accounting structures - but it is not yet operational and has not been unbundled from Eskom.
Is it on the agenda?
Part of the overall energy system reforms. Operation Vulindlela and Necom plan to prioritise distribution reform, though this process is likely to take time.
Goals
To separate the distribution division from Eskom, it will be a subsidiary to the holding company.
Documents
References
Departments / Govt Institutions
Summary
The process has begun to legally separate the distribution company, but it is still part of Eskom. The passing of the Electricity Regulation Amendment Act should also provide further impetus for the unbundling. A big hurdle to overcome is rising municipal debt of roughly R105bn, which is also hindering the unbundling process.
View DetailsIs it working?
The unbundling has a long way to go and progress appears slow. The distribution company has been only functionally unbundled, it has not been officially set up as a subsidiary. Monde Bala, its group executive, was appointed to lead NTCSA and now Agnes Mlambo is acting head of distribution.
Actions
Addressing municipal debt requires working with Treasury to put in place broad structural changes and potentially legislative reform. Eskom, with the backing of the Department of Electricity and Energy, Treasury and the Department of Cooperative Governance and Traditional Affairs, will implement distribution agency agreements (DAA) as an interim measure to arrest or prevent future municipal arrears. The DAAs essentially see Eskom take over electricity service delivery, billing, revenue collection and credit control for municipalities, which will maintain their electricity distribution licences.The long-term solution for municipal financial sustainability and stability is the Electricity Distribution Industry (EDI) reform process led by Operation Vulindlela.Other actions include Eskom applying for a distribution licence from Nersa as part of its plans to legally separate its Distribution division. The minister will play a key role by appointing a permanent board of directors for the entity.
Are there plans?
Full unbundling is still to take place, with the focus having been on the unbundling of the National Transmission Company of South Africa.
rnThere are plans in place to address municipal debt through EDI reform and Eskom's DAAs with municipalities.
rnIn December 2025 the Department of Electricity and Energy approved Eskom's revised unbundling strategy - in a statement Eskom similarly highlighted that municipal debt must be resolved in order to establish the National Electricity Distribution Company of South Africa.
Is it on the agenda?
Eskom distribution's unbundling is part of the overall energy system reforms. Operation Vulindlela and the National Energy Crisis Committee (Necom) are working on distribution reform, though this process is likely to take time.
Goals
To separate the distribution division from Eskom; it will be a subsidiary to the holding company.
Documents
References
Departments / Govt Institutions
Summary
Distribution’s role is to service the customer through building, operating and maintaining Distribution assets, while also acting in the national interest by actively partnering with the wider industry in resolving Distribution industry issues and enhancing stakeholder relations
View DetailsIs it working?
To be determined- The distribution company has only been legally unbundled but it has not been officially set up as a subsidiary
Actions
To complete the unbundling of Eskom and setting up of a generation company
Are there plans?
To complete the unbundling of Eskom
Is it on the agenda?
The distribution company has recently been legally separated from Eskom but it is not yet operational and has not been unbundled from Eskom
Goals
To have a separate distribution company from Eskom
Documents
References
Departments / Govt Institutions
Summary
Distribution’s role is to service the customer through building, operating and maintaining Distribution assets, while also acting in the national interest by actively partnering with the wider industry in resolving Distribution industry issues and enhancing stakeholder relations.
View DetailsIs it working?
To be determined- The distribution company has only been legally unbundled but it has not been officially set up as a subsidiary
Actions
To complete the unbundling of Eskom and setting up of a generation company
Are there plans?
To complete the unbundling of Eskom
Is it on the agenda?
The distribution company has recently been legally separated from Eskom but it is not yet operational and has not been unbundled from Eskom.
Goals
To have a separate distribution company from Eskom
Documents
References
Departments / Govt Institutions
Summary
Distribution’s role is to service the customer through building, operating and maintaining Distribution assets, while also acting in the national interest by actively partnering with the wider industry in resolving Distribution industry issues and enhancing stakeholder relations.
View DetailsIs it working?
To be determined. The distribution company has only been legally unbundled but it has not been officially set up as a subsidiary
Actions
To complete the unbundling of Eskom and setting up of a generation company
Are there plans?
To complete the unbundling of Eskom
Is it on the agenda?
The distribution company has recently been legally separated from Eskom but it is not yet operational and has not been unbundled from Eskom.
Goals
To have a separate distribution company from Eskom
Documents
References
Departments / Govt Institutions
Summary
Distribution’s role is to service the customer through building, operating and maintaining Distribution assets, while also acting in the national interest by actively partnering with the wider industry in resolving Distribution industry issues and enhancing stakeholder relations.
View DetailsIs it working?
To be determined. The distribution company has only been legally unbundled but it has not been officially set up as a subsidiary
Actions
To complete the unbundling of Eskom and setting up of a generation company
Are there plans?
To complete the unbundling of Eskom
Is it on the agenda?
The distribution company has recently been legally separated from Eskom but it is not yet operational and has not been unbundled from Eskom.
Goals
To have a separate distribution company from Eskom
Documents
References
Departments / Govt Institutions