The Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa, has announced to the nation the appointment of Dr Mteto Nyati to continue serving as Chairperson of the Eskom Board. “If it is not broken, why fix it,” Minister Ramokgopa asked.
He said Dr Nyati’s continued leadership provides continuity as Eskom moves from the immediate work of restoring generation performance to the longer-term task of securing the utility’s place in South Africa’s changing electricity market.
“I thank Dr Nyati for his leadership during a demanding period for Eskom. The improvement in the utility’s performance reflects the work of its Board, management and employees. His continued service will help carry that work into Eskom’s next phase, where the measure of success will be sustained energy security, a financially sound utility and better service to South Africans,” Minister Ramokgopa said.
He also set out the shareholder’s expectations for Eskom 2.0. The Generation Recovery Plan has improved the performance of the existing fleet. Long-term energy security now requires Eskom to plan for new generation capacity, expand the grid, strengthen its relationship with customers and adapt to the entry of new generators and traders, he said.
He further said the Board of Eskom is expected to develop a single roadmap for Eskom over the next three, five and ten years. “It must define the utility’s public obligations, its future generation mix, its commercial position and the investment required to sustain them. Eskom must be able to fulfil its mandate without relying on repeated fiscal support or sustained double-digit tariff increases as its business model,” Minister Ramokgopa said.
In line with the Integrated Resource Plan 2025, he added, Eskom must develop the technical and financial work needed for Board decisions on the future of its generation fleet. “This includes reducing emissions from existing coal stations, assessing coal abatement technologies and the repurposing and repowering of power station sites, and establishing Eskom’s strategic role in gas and nuclear,” he said, before adding: “Eskom Green must turn its approved strategy into a credible pipeline of projects. Its planned engagement with potential partners for approximately 2 GW of renewable capacity is an early step in that work.” Transmission expansion is necessary to connect new generation and supply growing industrial demand. The shareholder expects Eskom and the National Transmission Company South Africa to advance a deliverable grid programme, including through
Independent Transmission Projects, said Minister Ramokgopa. “The scale of this investment must also support
South African manufacturing, suppliers and skills development.” Eskom’s growth strategy must extend into the Southern African region. Regional demand and supply should inform opportunities for electricity trade and cross-border interconnectors, he added. Viable projects need to be developed with regional partners and
potential funders, including the DBSA, IDC and African Development Bank. The Minister also called for a stronger commercial and customer strategy. Mining and industry remain important sources of demand. Data centres require a deliberate approach to reliable supply, suitable locations, network capacity and long-term contracts. Customer care must be central to Eskom’s plans to retain and attract customers, with dependable service, accurate accounts and timely resolution of complaints. Municipal debt continues to place electricity supply and network investment under pressure. The Department will work with National Treasury, COGTA and SALGA on
payment discipline and the arrangements affecting sustainable supply. Free Basic Electricity must reach eligible households. Smart metering can improve service to customers while strengthening revenue collection and the management of distribution networks. The shareholder expects the Board to reduce system losses and revenue leakage, improve the value obtained from procurement, maintenance and project delivery, and continue strengthening financial controls. Eskom’s objective must be an unqualified audit opinion with no material findings. The utility must also develop its use of artificial intelligence, initially to address technical losses, forecasting and grid management, and progressively across its wider business. “Reliable and affordable electricity supports investment and jobs and helps ease pressure on households. Eskom has an indispensable role in that work. “The shareholder expects its Board to turn the gains of the recovery programme into a sustainable future for the utility and a better service for the people who depend on it,”
Minister concluded.
