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Eskom’s 102-year dominance as South Africa’s sole significant electricity supplier is drawing to a close as government energy reforms move from planning to implementation. The reform programme aims to dismantle Eskom’s generation monopoly and establish an open, competitive electricity market.
These changes are expected to significantly expand private-sector participation, allowing companies to compete with Eskom on equal terms. Legal experts at Webber Wentzel describe the reforms as the most far-reaching structural overhaul since Eskom was founded, marking the end of its vertically integrated monopoly.
Under the new framework, Eskom will become just one of many electricity suppliers, with its generation business competing directly with private producers for customers. While the Electricity Regulation Amendment (ERA) Act came into effect on 1 January 2025, experts caution that its practical impact will only become evident over the coming year.
A central pillar of the reform is the establishment of a Transmission System Operator (TSO), which will manage the national grid and act as the central buyer of electricity. This is supported by the draft Market Code released in the second half of 2025, which sets out the operational rules to be enforced by the TSO.
The Market Code is expected to be phased in over five years, launching in April 2026 and reaching full operation by 2031. Although it will allow private players to begin registering with the TSO, Webber Wentzel warns that onboarding delays mean many participants may only become fully operational years later. Together, these reforms are designed to guarantee equal grid access for all electricity generators, not just Eskom. Energy expert Chris Yelland says this removes long-standing barriers to private investment, noting that Eskom’s generation division has historically enjoyed preferential treatment.
Despite a clear policy direction toward competition, Eskom has continued to resist the erosion of its monopoly. The utility has engaged creditors over how unbundling will affect its debt and has proposed keeping its Transmission and Distribution divisions under Eskom Holdings, preserving significant influence over supposedly independent entities. Eskom’s latest unbundling plan confirms that the National Transmission Company South Africa would remain an Eskom Holdings subsidiary. This would prevent the transfer of transmission assets to an independent TSO, undermining efforts to ensure a level playing field.
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Critics warn that Eskom’s continued influence over transmission could disadvantage private generators, deter investment, and increase the risk of future load-shedding as coal-fired plants are retired. Eskom has also challenged the granting of electricity trading licences to private companies. After the ERA Act took effect, Nersa issued five new licences in early 2025 following extensive public consultation, including input from Eskom. The utility subsequently launched a judicial review, arguing that Nersa was reshaping national energy policy without adequate rules or consultation.
