- Utility says it supports market reform and competition and is participating in the NERSA process to develop new trading rules.
- Legal action has not been escalated and procedural steps were taken only to protect Eskom’s position.
- Eskom warns that reform without clear rules risks subsidy losses and regulatory uncertainty.
Eskom has issued a clarification following public commentary on the status of its High Court review application concerning electricity trading licences granted by the National Energy Regulator of South Africa. Read more
The utility said it has been consistent in its support for reform of South Africa’s electricity market and the introduction of competition. Eskom confirmed that it is actively participating alongside other market players in the NERSA led process to develop new electricity trading rules, with submissions due by the end of January 2026.
Eskom said it was disappointed that it had been compelled to proceed with aspects of the court case while regulatory work is underway, emphasising that it has no intention of restarting or escalating litigation as a substitute for reform and is not actively advancing the application.
The utility explained that earlier statements about staying or pausing legal proceedings referred to its intention to allow space for NERSA consultations and public hearings on new trading rules. Eskom noted that there is no legal mechanism for a formal court ordered stay, and that the pause was intended as a pragmatic step to support the development of a fair and sustainable electricity market.
According to Eskom, subsequent procedural activity did not signal a change in its position. The utility said it was forced to participate in legal processes after NOA Group Trading declined a request to keep the matter paused and initiated a case management conference to move the case forward. Eskom said it had no practical alternative but to take part in these steps to protect its legal standing.
Eskom stressed that this participation should not be interpreted as opposition to regulatory reform or as an attempt to mislead the public, policymakers or the court. Its objective, it said, remains the reduction of regulatory uncertainty and the implementation of reform within a lawful and coherent framework.
Eskom Group Chief Executive Dan Marokane said the original grounds for the review application remain unchanged.
“The granting of trading licences to new market entrants enables subsidy contributing customers to avoid contributing towards billions of rands in subsidies, which is why new fair trading rules are required,” Marokane said. “Until these rules are finalised, all market participants must operate under the existing regulatory framework to preserve the rule of law, maintain public oversight and avoid unintended consequences for customers and municipalities.”
Marokane added that Eskom supports competition on a level playing field and warned that in South Africa’s highly unequal context, reforms must ensure that subsidy obligations are not left solely with regulated entities and municipalities.
Eskom continues to advocate for the redesign of regulated tariffs to ensure cost recovery from all market participants, as well as the introduction of retailer of last resort obligations to protect customers and system stability.
The utility said it remains committed to transparent engagement with government, NERSA, industry stakeholders and the public, and will continue to participate in regulatory processes aimed at strengthening energy security, attracting investment and supporting a just and sustainable energy transition.
Author: Bryan Groenendaal
