South Africa’s parliamentary Portfolio Committee on Electricity and Energy has asked Eskom to give clearer and more transparent details on its unbundling plans during a four-day oversight visit to Limpopo and Gauteng on Thursday.
The request came after Eskom briefed lawmakers on the status of reforms aimed at separating the state-owned utility into distinct transmission, generation and distribution entities.
Lawmakers said businesses and investors remain uncertain about whether the proposed independent transmission system operator (TSO) will truly be autonomous if Eskom continues to own the national power grid.
Committee chairperson Nonkosi Mvana said the success of the unbundling depends on building confidence among market participants and ensuring that the new entities operate without undue influence.
Eskom told MPs it has already held two engagements with business groups and that the TSO’s mandate and independence will be enshrined in the legislation establishing it.
The utility said the laws and full operationalisation of the TSO are expected to be completed by April 2029.
It also outlined that a new green energy company should be set up within two years, while a standalone generation company could take up to four years to establish.
Eskom added that a National Electricity Distribution Company, targeted for 2030, will depend largely on resolving mounting municipal debt through distribution agency agreements approved by cabinet.
Mvana warned that unresolved municipal arrears remain one of the biggest threats to the success of electricity sector reform.
The committee said it will continue to closely monitor Eskom’s restructuring to ensure it delivers a transparent, efficient and financially sustainable power sector for South Africa.