Yasmin Bilal
Electricity and Energy Minister Dr Kgosientsho Ramokgopa has set out a broader agenda for Eskom as the utility moves beyond recovering the performance of its existing power stations.
The focus will now include securing future generation, expanding the electricity grid, improving customer service and putting Eskom on a more sustainable financial footing.
Ramokgopa announced today that Dr Mteto Nyati will continue serving as chairperson of the Eskom board. His continued leadership comes as the utility moves from its immediate recovery efforts towards longer-term changes in the electricity market.
“I thank Dr Nyati for his leadership during a demanding period for Eskom. The improvement in the utility’s performance reflects the work of its Board, management and employees,” Ramokgopa said.
He said Nyati’s continued service would help carry that work into what he described as Eskom’s next phase.
“The measure of success will be sustained energy security, a financially sound utility and better service to South Africans,” he said.
Ramokgopa said the Generation Recovery Plan had helped improve the performance of Eskom’s existing fleet, but the utility now needed to plan beyond the recovery of its current power stations.
He wants the board to develop a single roadmap covering the next three, five and 10 years.
That roadmap must set out Eskom’s public obligations, the future mix of electricity generation, its commercial position and the investment required to sustain the utility.
Ramokgopa also made it clear that Eskom’s future could not continue to depend on repeated financial support from the state or sustained double-digit electricity tariff increases.
The minister said Eskom must be able to fulfil its mandate while building a business model that is financially sustainable.
In line with the Integrated Resource Plan 2025, the board is expected to undertake the technical and financial work needed to make decisions about Eskom’s future generation fleet.
This includes reducing emissions from existing coal-fired power stations, assessing coal-abatement technologies and considering how power station sites can be repurposed or repowered.
Eskom will also have to establish its future role in gas and nuclear power.
Ramokgopa said Eskom Green must move from an approved strategy to a credible pipeline of renewable energy projects.
He pointed to planned engagements with potential partners for about 2GW of renewable generation as an early step in that process.
At the same time, he said the expansion of transmission infrastructure would be critical to connecting new generation and meeting growing demand from industry.
The shareholder expects Eskom and the National Transmission Company South Africa to advance a deliverable grid programme, including Independent Transmission Projects.
Ramokgopa said the scale of this investment should also support South African manufacturers and suppliers while creating opportunities for skills development.
Eskom’s growth strategy should not stop at South Africa’s borders.
The minister said the utility needed to consider opportunities across the Southern African region, with regional electricity demand and supply informing future electricity trading and cross-border interconnectors.
He said viable projects should be developed with regional partners and potential funders, including the Development Bank of Southern Africa, the Industrial Development Corporation and the African Development Bank.
The minister also wants Eskom to strengthen its commercial and customer strategy.
Mining and industry remain important sources of electricity demand, while the growth of data centres requires more deliberate planning around reliable supply, suitable locations, network capacity and long-term contracts.
“Customer care is central to retaining and attracting customers,” Ramokgopa said, pointing to dependable service, accurate accounts and the timely resolution of complaints.
Municipal debt remains another challenge for Eskom and its ability to invest in electricity networks and supply.
Ramokgopa said his department would work with National Treasury, the Department of Cooperative Governance and Traditional Affairs and the South African Local Government Association to improve payment discipline and develop sustainable supply arrangements.
He also stressed that Free Basic Electricity must reach households that qualify for the support.
Smart metering, he said, could help improve customer service while strengthening revenue collection and the management of electricity distribution.
The board is expected to reduce system losses and revenue leakage, while improving value from procurement, maintenance and project delivery.
Ramokgopa also wants stronger financial controls to achieve an unqualified audit opinion with no material findings.
Artificial intelligence will form part of those efforts, initially in areas such as identifying technical losses, forecasting and grid management before being expanded into other parts of the business.
Ramokgopa said the changes were ultimately linked to the wider economy and household costs.
“Reliable and affordable electricity supports investment and jobs and helps ease pressure on households. Eskom has an indispensable role in that work,” he said.
“The shareholder expects its Board to turn the gains of the recovery programme into a sustainable future for the utility and a better service for the people who depend on it,” he added.