Shift to a utility model for water and electricity services to ensure financial and operational sustainability

September 15, 2025

Implement the trading services reform programme to create professionally managed utilities in all metros.

National Treasury anticipates that a performance-based incentive for metro trading services infrastructure investments will be developed by 2026. National Treasury (and likely Eskom and DWS) will be driving this initiative. In this model, trading services are managed and delivered by dedicated, professional utilities (or ring-fenced utilities), which can be structured as separate business units within…

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Separate the functions of authority and service provider for water and electricity services in municipalities.

The implementation phase involves the service authority and the service provider roles. A municipality acts as the service authority (regulator and planner) with the right to decide who will distribute electricity or water within its area. It may appoint a suitable service provider (entity delivering the service) through a service delivery agreement. A dedicated utility…

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