Is it working?

The company is not yet operational which is problematic for the overall goal of developing a competitive electricity market. Urgency to establish a board or permanent leadership is also not apparent given that group executive Monde Bala was seconded and subsequently appointed permanent CEO of the NTCSA. Agnes Mlambo is acting group executive of the Distribution Company.

Actions

The Distribution Company needs to be legally separated from Eskom. To do this requires applying for a distribution licence from Nersa. Eskom must also engage with lenders to get their consent for legal separation. Resolving municipal debt is also key for the financial sustainability of a new subsidiary. Electricity and Energy Minister Kgosientsho Ramokgopa must then appoint a permanent board.

Are there plans?

A revised unbundling plan was approved by the Department of Electricity and Energy in December, which should result in some progress toward the distribution company's unbundling. The focus has been on the full unbundling of the National Transmission Company of South Africa first. Eskom HoldCo's board has oversight of the Distribution company.
rn

Is it on the agenda?

The unbundling of the distribution division is part of the Roadmap for Eskom in a reformed electricity supply industry.

Goals

To apppoint a board for the Distribution Company and unbundle the distribution business from Eskom so that it operates independently.

Documents

• Document One
• Document Two

References

• Reference Link One
• Reference Link Two
• Reference Link Three

Departments / Govt Institutions

Department of Electricity and Energy Eskom Holdings

Is it working?

The company is not unbundled. There has been little movement on this reform.

Actions

The legal separation of GenCo must be completed. The finalisation of the IRP2025 may help provide momentum to get the unbundling of Genco going again - as its strategy hinges on the country's electricity blueprint. Electricity and Energy Minister Kgosientsho Ramokgopa should appoint a permanent board. Eskom meanwhile has appointed a group executive for renewables, Rivoningo Mnisis, to support its aims to bulk up generation from this energy source.

Are there plans?

The functional separation of generation was completed in March 2021. Bheki Nxumalo was appointed group executive for generation in April 2023. But unbundling plans for generation are at a standstill, as the focus is on the full separation of the National Transmission Company of South Africa first.
rnEskom Holdings' board, which had new appointments this year, still has oversight of the generation business.
rnA due diligence process for the company's legal separation was completed and submitted to the Department of Public Enterprises but it is not clear if this has been approved by the Department of Electricity and Energy (DoEE), the new shareholder.
rnThe DoEE in late 2025 approved a revised unbundling strategy which should see progress on this deliverable.

Is it on the agenda?

The unbundling of Eskom was announced in 2019 by President Cyril Ramaphosa and forms part of the Eskom Roadmap.

Goals

Appointment of the board of a Generation Company, to be unbundled from Eskom and operate independently.

References

• Reference Link One

Departments / Govt Institutions

Department of Electricity and Energy Eskom Holdings

Is it working?

The NTCSA is operational and plans to provide transparent and fair access to the national grid for public and private participants. While the NTCSA's board has been appointed, its effectiveness and ability to operate independently is in question, with two non-executive directors of the Eskom Holdings board (Tryphosa Ramano and Busisiwe Vilakazi) also holding non-executive roles on the NTCSA board. As of 1 December 2025, only one executive, Busisiwe Vilakazi, holds positions on both boards.The NTCSA has also faced interference from Eskom Holdings in moving forward with submitting its market operator licence and market code to Nersa for approval.

Actions

The NTCSA's financial independence from the holding company Eskom HoldCo is yet to be addressed by by resolving the Lazard upward guarantee structure.The NTCSA in November obtained licensing approval for its market operator function; it is also finalising the market code to be sent to Nersa for approval, which is key to establishing a wholesale energy market.

Are there plans?

With the NTCSA board in place, the entity is instrumental in enabling the rollout of more transmission infrastructure through the Transmission Development Plan (TDP), establishing an Independent Transmission System Operator and supporting the development of a wholesale energy market.

Is it on the agenda?

The NTCSA unbundling is part of the Roadmap for Eskom in a reformed electricity supply industry, and is enabled by the Electricity Regulation Amendment Act that came into effect on 1 January 2025. The NTCSA is already registered and received approval for the requisite licences from Nersa.

Goals

To enable the transmission company to operate independently of Eskom.

Documents

• Document One

References

• Reference Link One
• Reference Link Two

Departments / Govt Institutions

Department of Electricity and Energy Eskom Holdings National Transmission Company of South Africa