Eskom says it will fully support the task team being created to deliver the fully independent State-owned Transmission System Operator (TSO) that will have ownership and control of transmission assets and be responsible for operating the electricity market.

Eskom made the statement in response to a directive in relation to the transfer of assets to the TSO made by President Cyril Ramaphosa in his State of the Nation Address (SoNA) on February 12.

Ramaphosa’s directive contradicted an unbundling plan endorsed by the Department of Electricity and Energy in December, which indicated that the transmission assets would not be transferred to the TSO, and would instead be retained by the National Transmission Company South Africa, which would remain an Eskom Holdings subsidiary.

That announcement had been met with surprise by industry commentators and by organised business, which viewed it as a deviation from the agreed economic reforms being pursued in relation to Eskom’s restructuring under Operation Vulindela.

Ramaphosa said a dedicated task team under the National Energy Crisis Committee would be set up to address various issues relating to the restructuring process, including clear time frames for its phased implementation.

He said the task team would report back to him in three months.

In her reaction to the SoNA, Business Leadership South Africa CEO Busisiwe Mavuso said the President’s statement clearly asserted government’s position on the Eskom unbundling and the role and independence of the TSO.

She said she was encouraged by the statement, given that the unbundling issue had caused major concern and had led international investors and local business leaders to question government’s commitment to the reform programme.