Electricity

September 15, 2025

Full unbundling of NTCSA

The NTCSA has been operational since 1 July 2024. Eskom and the NTCSA have satisfied all the requirements necessary to effect the legal separation and operationalisation of the entity. After the Electricity Regulation Act came into effect in January 2025, the NTCSA was officially established as the transmission system operator. It is working toward becoming…

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Independent Transmission Project (ITP) funding model/ Credit Guarantee Vehicle

Eskom’s Transmission Development Plan, which was announced last year, predicted that 53GW of new generation (mainly renewables) will be required by 2032 to provide energy security. To enable this new generation, approximately 14,200km of transmission network must be developed. Eskom will be unable to fund this from its balance sheet because of its massive debt….

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Establishing the Independent Transmission Project (ITP) procurement office

To facilitate private investments and development of transmission infrastructure, an office similar to the IPPO needs to be established. This will be known as the Independent Transmission Project Office.

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Curtailment protocol

The curtailment framework was approved by Nersa in April 2025. The process began on 28 January 2024 when Eskom released an addendum on the GCCA. The GCCA 2025 Addendum provides the 2025 connection capacity with curtailment for energy generators and serves as an addendum to the GCCA 2025 published in October 2023, for the purpose…

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Interim Grid Capacity Allocation Rules (IGCAR)

To mitigate a similar failure of BW6, Eskom released its Interim Grid Capacity Allocation Rules (IGCAR) in 2023. These were formulated in response to surging demand for grid access in a context of acute grid scarcity. Based on these rules, Eskom does not grant grid access based on “first come, first served” principles anymore but…

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Removal of NTCSA upstream guarantee (‘Lazard Structure’)

Eskom has been working with financial adviser Lazard for a number of years in an attempt to bolster its balance sheet. Lazard was hired originally about six years ago to produce options for Eskom’s turnaround in a move that was seen as more than just debt restructuring. However, the advisory firm has been restricted to…

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Eskom Distribution company unbundling

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.

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Municipality Eskom debt workout strategy

Municipalities have been presented with relief from the Eskom debt repayments following National Treasury’s decision to write off some municipal debt over a period of three years, but they must work for this relief by adhering to the strict conditions set by NT. This decision was announced at a media workshop hosted by NT on…

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Virtual wheeling protocols

Virtual wheeling makes it possible to execute contracts with purchasers like traders or corporate entities and use several generators of electricity to deliver to many off-takers. Additionally, as the buyer may receive wheeling credit in the form of a refund, no changes to the power supply agreement are necessary.

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“Real” wheeling protocols

The wheeling framework was approved by Nersa in March and confirmed at a media briefing held by the DoEE minister in April 2025.There is an increased number of applications for trading licences which Nersa has approved. Eskom, however, has launched a legal challenge against Nersa to grant five licences so far. Nersa chairperson Thembani Bukula…

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