- Energy Council supports gradual transition to independent transmission operator.
- SA Wholesale Electricity Market launch pushed to Q3 2026 to ensure readiness.
- Full transmission unbundling now expected by April 2029.
South Africa’s energy reform programme is advancing at a measured pace, with industry leaders backing a phased approach to the unbundling of Eskom and the establishment of an independent transmission system operator.
The Energy Council of South Africa has formally endorsed a gradual transition, emphasising the need to balance structural reform with the management of commercial and fiscal risks. The council, chaired by Simon Baloyi who is also the CEO of petrochemicals giant Sasol, welcomed the intervention of Cyril Ramaphosa through a dedicated task team tasked with developing a roadmap for a state owned transmission entity that will ultimately own and operate grid assets.
The Energy Council of South Africa is widely regarded as a fossil fuel lobby group and an obstacle to ambitious climate action, largely because of its founding members, leadership, and policy positions, all of which support the continued use of coal and gas. It was established in 2021 with founding members including Sasol, TotalEnergies, Exxaro, Eskom, and others across the energy value chain. Its leadership for 2024 to 2025 includes executives from Sasol, Exxaro, and Seriti Resources, all of which are significant contributors to, or beneficiaries of, fossil fuel extraction and consumption.
While reaffirming support for reform, the council cautioned against aggressive timelines that could undermine energy security or destabilise Eskom’s financial position. This stance contrasts with calls from groups such as Business Leadership South Africa, which has raised concerns over delays in fully separating the transmission business from Eskom Holdings.
Revised timelines reflect this more cautious approach. Full operationalisation of the transmission system operator is now expected by April 2029, while the creation of a standalone national distribution company is targeted for 2030, subject to progress in resolving municipal debt challenges.
Related news:Eskom risks implosion as transmission unbundling battle deepens
A key pillar of the reform process, the South African Wholesale Electricity Market, has also been delayed. The National Transmission Company South Africa confirmed that the market will now launch in the third quarter of 2026, instead of the previously scheduled April 2026 date.
The adjustment follows further engagement with the National Energy Regulator of South Africa and industry stakeholders, with additional work required to ensure that operational, regulatory and market systems are fully aligned before implementation.
Progress has nonetheless been recorded. In December 2025, the transmission company secured a market operator licence from the regulator, marking a significant milestone in establishing a transparent and competitive electricity trading framework. Some licence conditions remain under finalisation.
According to NTCSA CEO Monde Bala, the wholesale market is expected to play a central role in improving efficiency, enhancing transparency and attracting investment into the sector. Over time, this could contribute to lower electricity costs and strengthened energy security.
The rollout will follow a structured and phased model designed to safeguard grid stability and minimise disruption. This includes close coordination across technical, operational and regulatory domains ahead of the market going live.
At a strategic level, the Energy Council has stressed that Eskom’s unbundling must deliver on three core objectives: decarbonisation, security of supply and affordability. As South Africa navigates one of the most significant energy transitions on the continent, the emphasis is firmly on sequencing reforms in a way that maintains system stability while enabling long term market development.
Author: Bryan Groenendaal
