- The National Transmission Company South Africa (NTCSA) has welcomed formal approval from the Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa, to establish a new and fully independent Transmission System Operator (TSO).
- The entity will be created as a standalone State-Owned Company (SOC) outside Eskom Holdings, and once operational, will function under the regulatory authority of the National Energy Regulator of South Africa (NERSA).
The approval forms part of the Minister’s sign-off of Eskom Holdings’ revised unbundling strategy, designed to align with the requirements of the Electricity Regulation Amendment Act (ERAA). Government sees this as a key milestone in its wider energy-market reform programme aimed at building a more secure, better-managed and increasingly open electricity system.
Monde Bala, Chief Executive Officer of NTCSA, said the decision represents “a further welcome development in advancing policy to deliver the future structure of the electricity supply industry and address affordability through establishing a fair, competitive market for electricity in South Africa”.
He added: “The TSO will be fully independent of both NTCSA and Eskom Holdings, ensuring transparent and unbiased access to the transmission network under strong regulatory oversight from NERSA. The hard work now continues to ensure a robust solution is delivered on schedule.”
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Bala noted that the new structure is designed to build investor trust and reduce barriers to entry. “This is the best solution to provide confidence and trust to attract other players to invest in transmission infrastructure by enabling fair access to the grid. It will strengthen energy security and remove Eskom from the potential conflict inherent in both generating power and owning or operating the transmission system. Granting Independent Power Producers (IPPs) non-discriminatory access to the grid is expected to boost investor confidence and accelerate investment in low-carbon and renewable generation projects.”
Delivering an independent TSO
The ERAA foresees the establishment of the independent TSO within five years. Eskom has already begun implementing the essential building blocks to achieve this within the expected timeframe.
The new TSO—created entirely outside the Eskom group—will take on the full suite of functions defined in the ERAA:
- Transmitter: Develop and implement the Transmission Development Plan; operate and maintain the national transmission network; and provide non-discriminatory access to all market players.
- System Operator: Manage the integrated power system and maintain real-time supply–demand balance.
- Market Operator: Establish and run a transparent, non-discriminatory electricity trading platform in line with market codes and NERSA rules, enabling competitive trading between generators, traders and customers.
- Central Purchasing Agency: Procure electricity from generators—including Eskom GenerationCo, Eskom Green, and IPPs—and facilitate power-purchase agreements.
- Additional functions: Provide and coordinate ancillary services, including frequency and voltage support, to maintain system reliability.
This approval marks a significant step forward in reshaping South Africa’s power sector, with the independent TSO set to play a central role in fostering a more transparent, competitive and investment-ready electricity market.
Author: Bryan Groenendaal
