By JD GLOBAL MEDIA
Eskom is entering a new phase of its recovery programme with the government placing electricity affordability alongside reliability and long-term financial sustainability at the centre of the power utility's next three years.
Electricity and Energy Minister Dr Kgosientsho Ramokgopa announced on 25 September 2026 that Dr Mteto Nyati will continue as chairperson of the Eskom board for another three-year term. His renewed tenure is due to take effect from 1 November 2026.
The announcement comes as the government moves the utility beyond the immediate priority of restoring generation performance towards a broader programme referred to as "Eskom 2.0".
Under the new direction, the board is expected to work on reducing electricity costs, maintaining reliable supply, preparing for additional generation capacity, expanding the electricity grid and positioning Eskom for a changing power market in which private generators and electricity traders are playing a greater role.
The change represents an important shift in the challenges facing the state-owned utility. While restoring the performance of Eskom's generation fleet has been a major priority in recent years, the government is now placing greater emphasis on what electricity will cost households and businesses and how the utility will remain financially viable as South Africa's electricity market changes.
Nyati Receives Three More Years
Nyati's first term as Eskom board chairperson was due to end at the end of October.
His continuation was announced by Ramokgopa after Cabinet approved the extension. Eskom separately confirmed that the chairperson would remain in the position for another three years from 1 November.
The decision provides continuity at board level while Eskom works through several major structural and operational changes.
Eskom said that during Nyati's leadership, its board had overseen progress in operational performance, financial sustainability and governance. The utility also pointed to work aimed at reducing reliance on diesel generation, returning the organisation to profitability and advancing structural reforms.
The continuation of the chairperson's term therefore coincides with a period in which the government wants the utility to build on improvements already made rather than return to short-term crisis management.
The next stage will require Eskom to demonstrate that improved operational performance can be translated into a sustainable electricity system that is financially stronger and more affordable for consumers.
Affordability Becomes A Central Priority
Ramokgopa's instructions to the board place electricity costs prominently on the agenda.
The minister said the shareholder expects Eskom's board to turn gains from the recovery programme into a sustainable future for the utility while providing better service to the people who depend on electricity.
The focus on affordability comes at a time when electricity costs remain a significant consideration for households, businesses and industries.
For households, electricity prices affect monthly living costs and the ability of families to manage other expenses.
For businesses, electricity forms part of operating costs and can influence decisions about investment, production and employment.
For energy-intensive industries, the cost and reliability of electricity can be particularly important when companies compare South Africa with competing investment destinations.
The government's latest expectations therefore connect Eskom's financial and operational performance directly to broader economic objectives.
Reliability Remains Important
Although affordability has become a central theme of the new mandate, the government has not abandoned the need for reliable electricity.
Ramokgopa has instructed the board to continue improving reliability while planning for new generation capacity and strengthening the grid.
This creates a complex balancing requirement.
Eskom needs sufficient generation capacity to meet demand, but it must also control costs. At the same time, the transmission network needs to be expanded and strengthened to accommodate electricity from different generation sources.
The country's electricity system is also becoming more diverse.
Alongside Eskom's traditional generation fleet, private renewable-energy producers and other independent generators are increasingly contributing to electricity supply.
That means the utility's role is changing from being almost entirely centred on generating and distributing electricity itself to operating within a broader electricity market.
The Emergence Of Eskom 2.0
The government has described the next phase as "Eskom 2.0".
The concept involves moving beyond the emergency recovery of the existing system and preparing the utility for the electricity market that South Africa is developing.
According to the Department of Electricity and Energy, the next phase is intended to focus on sustained energy security, a financially sound utility and better service for consumers.
The board's responsibilities therefore extend beyond the performance of individual power stations.
It must consider Eskom's long-term generation requirements, the transmission network, customer relationships, financial sustainability and the utility's position in a market where more companies are involved in producing and trading electricity.
This will require long-term planning because major electricity infrastructure cannot be developed quickly.
New power stations, transmission lines and substations can require substantial investment, regulatory approvals and lengthy construction periods.
More Generation Capacity Needed
One of the expectations placed on the board is to plan for additional generation capacity.
South Africa's electricity demand can change as the economy grows, industries expand and households adopt technologies such as electric vehicles and other electricity-dependent equipment.
At the same time, existing generation facilities have finite operating lives and require maintenance, refurbishment or replacement.
The government therefore wants Eskom to look beyond the immediate recovery of existing power stations and plan for future demand.
The precise mix of future generation will remain an important policy and investment question.
Eskom has historically relied heavily on coal-fired generation, while South Africa has also expanded renewable-energy capacity and continues to debate the role of gas, nuclear power, battery storage and other technologies.
The minister has indicated that Eskom must define its strategic role in gas and nuclear energy as part of its longer-term planning.
Expanding The Grid
Generation capacity alone cannot guarantee electricity supply if the transmission network cannot move power to where it is needed.
The government has therefore also instructed Eskom to expand the grid.
This is increasingly important as renewable-energy projects are developed in areas that can be far from major centres of electricity demand.
South Africa's electricity infrastructure must be able to connect new generation projects and transport electricity across provinces while maintaining system stability.
The development of the transmission network also forms part of the broader restructuring of Eskom.
The National Transmission Company South Africa has been established as part of the process of separating Eskom's different businesses and creating a more open electricity market.
Eskom has said that significant progress has been made in the unbundling process and in establishing and operationalising the transmission company.
Changing Relationship With Private Generators
South Africa's electricity market is no longer limited to Eskom's own generation fleet.
Private renewable-energy projects and independent power producers have become increasingly important sources of electricity.
The government expects Eskom to adapt to this changing environment.
Ramokgopa specifically instructed the board to strengthen customer relationships and adapt to the entry of new generators and traders.
This means Eskom will increasingly operate alongside other participants in the electricity market.
The change can create opportunities for additional investment and generation, but it also requires new approaches to transmission, system management, market arrangements and customer relationships.
Eskom's future financial model will consequently have to account for a more competitive and diversified electricity system.
Financial Sustainability Remains A Major Challenge
The government's emphasis on affordability is closely linked to Eskom's financial position.
A utility cannot maintain generation, invest in new infrastructure and expand its network indefinitely without a sustainable financial model.
At the same time, electricity prices cannot simply be increased without considering the impact on consumers and businesses.
This creates a difficult policy balance.
Eskom needs sufficient revenue to maintain and expand infrastructure, but customers need electricity prices that remain manageable.
The new mandate therefore places pressure on the board to find efficiencies, improve operational performance and develop long-term investment plans without transferring all additional costs to consumers.
The government's latest announcement indicates that the board will be expected to address these competing priorities together rather than treating affordability and reliability as separate issues.
Eskom's Recovery Has Changed The Immediate Focus
The renewed term for Nyati comes after a period in which Eskom's operational recovery has received considerable attention.
The utility has reported improvements in generation performance and reduced reliance on diesel-powered generation. Eskom has also reported profits in consecutive financial years, according to information released in connection with the board extension.
Those developments have changed the government's immediate challenge.
The question is increasingly how to sustain improvements over the long term.
A power system cannot depend on temporary operational gains. Generation performance must be maintained through effective maintenance, sufficient investment, skilled personnel and sound management.
The financial recovery must also be maintained while Eskom continues investing in infrastructure.
This is why the new board mandate places emphasis on a longer time horizon.
What The Three-Year Extension Means
Nyati's three-year extension gives the board continuity while these changes are being implemented.
The continuation also means that the same board leadership will be responsible for overseeing a number of major developments in the electricity sector.
These include the continued restructuring of Eskom, the development of the transmission system, the expansion of generation capacity and the utility's response to increased private-sector participation.
Eskom CEO Dan Marokane remains responsible for the day-to-day executive management of the utility.
The board's role is to provide governance, strategic oversight and accountability while management implements the company's operational plans.
Eskom's current leadership structure lists Nyati as chairperson and Marokane as group chief executive.
The separation between board oversight and executive management will remain important as the utility enters its next phase.
The Impact On Households
For ordinary electricity users, the most important question is whether the new strategy eventually translates into more affordable and dependable electricity.
The government's stated objective is to reduce electricity costs while maintaining reliability.
That objective will require more than a change in board leadership.
Eskom's costs are influenced by generation, maintenance, debt, staffing, infrastructure investment, transmission and distribution, procurement and other operational factors.
Changes in the broader electricity market can also influence the cost of electricity supplied to consumers.
Consequently, the effect of the new strategy will depend on how effectively Eskom implements the government's expectations over the coming years.
The board will have to demonstrate measurable progress rather than simply adopt new strategic language.
Businesses Also Watching Eskom
South African businesses have a direct interest in the utility's next phase.
Reliable electricity reduces the risk of production interruptions and allows companies to plan operations more effectively.
However, the cost of electricity is also important.
Manufacturing companies, mines, data centres, retailers and other large electricity users must factor energy costs into investment decisions.
If Eskom can improve reliability while controlling costs, it could strengthen the operating environment for businesses.
If costs continue rising faster than businesses can absorb them, companies may seek alternatives through private generation, renewable-energy projects or other electricity arrangements.
The government's expectation that Eskom adapt to new generators and traders reflects this changing market.
The Transmission Reform
One of the most significant structural changes underway is the separation of the transmission business.
The National Transmission Company South Africa has already been established as part of Eskom's restructuring.
The transmission company is intended to operate as a distinct part of the electricity system, helping create the institutional framework for a more open electricity market.
Eskom has said that its board has overseen progress in establishing and operationalising the NTCSA.
The restructuring is important because the transmission network connects different generators to electricity users.
As more independent producers enter the market, the transmission system will have to accommodate a wider range of electricity sources.
This makes grid investment a central part of South Africa's energy transition.
Long-Term Questions Remain
Despite the renewed leadership and clearer government expectations, several major questions remain.
How quickly can Eskom expand the grid?
How much new generation capacity will be required?
What combination of coal, renewable energy, gas, nuclear power and storage will form the future electricity mix?
How will Eskom maintain financial sustainability while keeping electricity affordable?
How quickly can the transmission restructuring be completed?
And how will Eskom compete and cooperate with private electricity generators and traders?
These questions cannot be answered through a single board appointment.
They require long-term policy decisions, investment and implementation.
The Next Three Years
The three-year extension gives Nyati and the board a defined period in which to deliver on the government's expectations.
The immediate objectives are clear: maintain reliable electricity, reduce costs, strengthen Eskom's finances, plan for new generation and expand the grid.
The broader objective is to ensure that Eskom remains relevant and financially sustainable in an electricity market that is changing rapidly.
The government is effectively moving the utility's performance test from crisis management to sustainability.
For years, much of the national conversation around Eskom centred on whether the country would have enough electricity.
The next phase adds another question: whether South Africa can have electricity that is both reliable and affordable while the power system undergoes structural change.
The answer will depend on the performance of the board, management, power stations, transmission network and the wider electricity market.
Nyati's continuation provides leadership continuity, but the new mandate places clear expectations on the board.
The government wants Eskom to build on the operational improvements achieved during the recovery period rather than treating those gains as an endpoint.
The focus now is on creating a utility capable of supporting economic growth, maintaining energy security and operating on a financially sustainable basis.
For households, businesses and investors, the coming three years will therefore be important.
The success of Eskom's next phase will ultimately be measured not only by whether the lights remain on, but also by whether the electricity system can support economic activity without placing unsustainable pressure on consumers.
The government has given the board its direction. The next stage will be implementation — maintaining reliability, controlling costs, expanding infrastructure and adapting Eskom to a more diverse electricity market.
As Nyati begins his renewed term, Eskom moves into its next chapter with the immediate generation crisis no longer the only measure of performance. Affordability, investment, grid expansion, financial sustainability and the utility's ability to function within a changing electricity market will increasingly determine whether the "Eskom 2.0" agenda delivers the results expected by South Africans.
Comments
Post a Comment