{"id":18401,"date":"2026-02-03T15:36:48","date_gmt":"2026-02-03T15:36:48","guid":{"rendered":"https:\/\/microvibenews.com\/?p=18401"},"modified":"2026-02-03T15:36:48","modified_gmt":"2026-02-03T15:36:48","slug":"eskom-unbundling-faces-fresh-hurdles-as-energy-reform-drags-on","status":"publish","type":"post","link":"https:\/\/microvibenews.com\/?p=18401","title":{"rendered":"Eskom unbundling faces fresh hurdles as energy reform drags on"},"content":{"rendered":"<p><\/p>\n<div id=\"textFreeArticle\">\n<p><iframe loading=\"lazy\" src=\"https:\/\/iframe.iono.fm\/e\/1642134?layout=modern\" width=\"100%\" height=\"170\" frameborder=\"0\" data-mce-fragment=\"1\"><\/iframe><\/p>\n<p>You can also listen to this podcast on iono.fm here.<\/p>\n<p><strong>J<\/strong><strong>EREMY MAGGS:<\/strong> South Africa\u2019s flagship reform initiative, Operation Vulindlela, has flagged one of its oldest and most critical targets \u2013 the restructuring of Eskom \u2013 as still facing significant challenges, even as other reforms make headway, with energy reform still stalling in many respects, and that obviously has implications for growth and load shedding risk.<\/p>\n<p>Read:<br \/>Business turns watchdog on government reforms<br \/>Urgent action needed on vehicle industry as reform momentum shows mixed progress<\/p>\n<p>I want to talk now to Rudi Dicks, who\u2019s head of the Project Management Office in the Presidency. Let\u2019s find out why progress is lagging and what it might mean for the energy sector and the economy.<\/p>\n<p>Rudi, welcome to you. This is an important issue, you\u2019ve described Eskom restructuring as, I quote, \u201cfacing significant challenges\u201d. Why is progress still so slow after years of reform?<\/p>\n<p><strong>RUDI DICKS: <\/strong>Well, I think let\u2019s look at it as a glass half full. Jeremy, I think if you look at some of the outcomes of last year, it\u2019s quite an important part of the overall reform that moves into a competitive market and ultimately brings down prices, and that\u2019s an important thing.<\/p>\n<p>So there have been quite a number of steps.<\/p>\n<p>Firstly, the (1:11 \u2026.. ) received their market operator licence last year, they also set out the grid access rules for private investors and how those rules work. This is all important as we move towards the launch of the South African Wholesale Electricity Market (Sawem) in the next few months.<\/p>\n<p>Listen\/read: Operation Vulindela: Challenges and triumphs<\/p>\n<p>There are a couple of things that need to happen. for example, the electricity market code has to be issued as well, and it\u2019s a complex thing. It\u2019s behind because we\u2019ve got to deal with the whole complexity of how one unbundles.<\/p>\n<p>There are financial implications, there are technical implications, and these things have slowed us down in terms of moving the reform at the pace that we (want).<\/p>\n<div class=\"visible-sm-block visible-xs-block m1010\">\n<div class=\"ad-container-wrapper\">\n<p>ADVERTISEMENT<\/p>\n<p>CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n<blockquote>\n<p>The objective still remains that the Electricity Regulation Act has set out for the unbundling of Eskom by 2029.<\/p>\n<\/blockquote>\n<p>We still feel we are on target, but we have to move through some of the technical and financial constraints that are there, and they\u2019re real.<\/p>\n<p>This is the important parts and that\u2019s why we\u2019re saying we\u2019ve got to get expertise in, we\u2019ve got to work with Eskom and with the ministry, and we\u2019ve got to get this right.<\/p>\n<p><strong>JEREMY MAGGS: <\/strong>Let\u2019s talk about getting the expertise in, in just a moment. But I acknowledge the complexity around it. You\u2019ve raised technical and financial bottlenecks. Is that principally it, or are there also political considerations?<\/p>\n<p><strong>RUDI DICKS: <\/strong>No, it\u2019s principally, in my view, the Cabinet has made a decision on the reform programme and on the restructuring of Eskom. The president (Cyril Ramaphosa) has made that fairly clear, and that\u2019s what we\u2019ve got to work through.<\/p>\n<p>We\u2019ve got to ask how we get there in the best possible way and how we deal with the financial risk.<\/p>\n<blockquote>\n<p>We don\u2019t want a fiscal risk to the sovereign because we didn\u2019t do this properly. That risk is real; Eskom is just coming out of a debt moratorium.<\/p>\n<\/blockquote>\n<p>How do we deal with the debt allocation to the National Transmission Company South Africa, or TSO (Transmission System Operator) in this instance? How do we deal with assets? For me, those are fundamental things.<\/p>\n<blockquote>\n<p>We\u2019ve got to create a competitive market. We\u2019ve got to have a fair playing field.<\/p>\n<\/blockquote>\n<p>We\u2019ve got to ensure that private investors feel that the incumbent is part of a competitive process, and that the incumbent is not controlling who buys electrons, or who invests in assets or not. Those are important things, but it is complex.<\/p>\n<p>Jeremy, just to remind you and the listeners, it was very much the same when we had to create the subsidiary, the National Transmission Company South Africa. We initially set a target way back in 2019, then in 2020 there was Covid-19, and we eventually only operationalised that in 2024, just before the elections.<\/p>\n<div class=\"visible-sm-block visible-xs-block m1010\">\n<div class=\"ad-container-wrapper\">\n<p>ADVERTISEMENT:<\/p>\n<p>CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n<p>The National Transmission Company South Africa became fully operational, and we had to go through a whole series of issues: lender consent, avoiding covenant breach, transferring assets, transferring property, transferring staff.<\/p>\n<p>These things do take time. They\u2019re not insurmountable. They can be resolved, and we know we can do this.<\/p>\n<p><strong>JEREMY MAGGS: <\/strong>Rudi, there is the argument that corruption and historical mismanagement at Eskom are perhaps deeper than technical reform can fix. How do you respond to that?<\/p>\n<p><strong>RUDI DICKS: <\/strong>I can\u2019t really, because I don\u2019t quite know what is happening in Eskom from a management point of view. I know that Eskom has played a significant role in trying to deal with that, dealing with the vestiges of state capture and fixing things.<\/p>\n<p>I know Dan (Marokane) and the team, and the board, have been working really hard. It\u2019s the same thing with monopolies, whether public or private, it\u2019s difficult to let go and difficult to allow for competition.<\/p>\n<p>Read:<br \/>Eskom CEO says overdue municipal debt delaying firm\u2019s unbundling<br \/>Eskom\u2019s selective war on competition<br \/>Eskom\u2019s Nersa court challenge: A reactionary strike against reform<\/p>\n<p>Generally, this is the problem. We\u2019ve got to express quite clearly, as the government that owns Eskom, that we\u2019ve got to create a competitive environment.<\/p>\n<p>Ultimately, this is not just for the sake of competition, it\u2019s about price, it\u2019s about energy security, and it\u2019s about ensuring that we can get investment into the energy sector.<\/p>\n<p><strong>JEREMY MAGGS: <\/strong>I want to circle back to bringing the expertise in. This is not the first time I\u2019ve heard that. What is happening in that respect? Where are you headhunting, and is it successful?<\/p>\n<p><strong>RUDI DICKS: <\/strong>I think the key drivers would be National Treasury, through asset and liability management, and of course Eskom and the National Transmission Company South Africa.<\/p>\n<blockquote>\n<p>We are laggards in reform on this matter, more than 110 countries, there are global experts and local experts at many of the financial consultancy firms that are able to do this.<\/p>\n<\/blockquote>\n<p>There are people who can do that. We\u2019ve got to pull on the right resources. Some of the banks here are familiar and have put in options, for example, way back in 2019. I don\u2019t think there is a lack of technical expertise.<\/p>\n<div class=\"visible-sm-block visible-xs-block m1010\">\n<div class=\"ad-container-wrapper\">\n<p>ADVERTISEMENT:<\/p>\n<p>CONTINUE READING BELOW<\/p>\n<\/p><\/div>\n<\/div>\n<p>It\u2019s about pulling them in and finding the best possible solution so that we avoid risk to both the utility and for us to bear that cost as the sovereign.<\/p>\n<p><strong>JEREMY MAGGS: <\/strong>Just a final one. I acknowledge the glass-half-full analogy that you raised, but there are delays. Does this risk more load shedding this year? It\u2019s not unfair to say the public is desperate for some certainty in that respect. Where is your headspace on that?<\/p>\n<p><strong>RUDI DICKS: <\/strong>I\u2019ve always said load shedding risk will remain as long as you don\u2019t reform. That\u2019s quite important.<\/p>\n<blockquote>\n<p>But I\u2019m quite certain that we will not have load shedding this year.<\/p>\n<\/blockquote>\n<p>Eskom is producing excess electricity. The reserve margins are way up. A lot of people have found alternative energy. There\u2019s been a doubling of rooftop PV. Many of the projects that we announced way back in 2022, 2023 and 2024 are coming online.<\/p>\n<p>I certainly don\u2019t think that, but the risk is there if we don\u2019t reform the energy market. We\u2019ve got to move away from a vertically integrated system to a competitive market where the South African Wholesale Electricity Market exists.<\/p>\n<p>Read:<br \/>Eskom keeps the lights on for 231 straight days<br \/>Eskom grid stronger than at any time in last 5 years<\/p>\n<p>That is what has to happen, we\u2019ve got to have a transmission system operator that manages that market, and a very strong regulator to deal with any regulatory challenges.<\/p>\n<p>I\u2019m fairly certain that why we\u2019re doing this is not only to avoid load shedding, but to ensure energy security and sustain growth in the energy market going forward.<\/p>\n<p><strong>JEREMY MAGGS: <\/strong>Rudi Dicks, thank you very much indeed, head of the Project Management Office in the Presidency. I appreciate your time. Thank you.<\/p>\n<p><em>Follow Moneyweb\u2019s in-depth finance and business news on WhatsApp here.<\/em><\/p>\n<\/p><\/div>\n<p><script data-cfasync=\"false\">\n            !function(f,b,e,v,n,t,s)\n            {if(f.fbq)return;n=f.fbq=function(){n.callMethod?\n                n.callMethod.apply(n,arguments):n.queue.push(arguments)};\n                if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';\n                n.queue=[];t=b.createElement(e);t.async=!0;\n                t.src=v;s=b.getElementsByTagName(e)[0];\n                s.parentNode.insertBefore(t,s)}(window, document,'script',\n                'https:\/\/connect.facebook.net\/en_US\/fbevents.js');\n            fbq('init', '779812924991616');\n            fbq('track', 'PageView');\n        <\/script>#Eskom #unbundling #faces #fresh #hurdles #energy #reform #drags<\/p>\n","protected":false},"excerpt":{"rendered":"<p>You can also listen to this po&hellip; <\/p>\n","protected":false},"author":1,"featured_media":18402,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[11571,815,1817,2921,1133,4243,993,11570],"_links":{"self":[{"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/posts\/18401"}],"collection":[{"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18401"}],"version-history":[{"count":0,"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/posts\/18401\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/media\/18402"}],"wp:attachment":[{"href":"https:\/\/microvibenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18401"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18401"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18401"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}