Solidarity secretary-general Gideon du Plessis has raised serious concerns over the pace of Eskom’s unbundling, warning that a rushed process could damage the power utility and push up electricity costs.

Du Plessis made the comments while reflecting on recent salary negotiations between unions and Eskom. The parties reached a three-year wage agreement, with bargaining unit employees set to receive annual increases of 7%.

But he said major issues remain unresolved. One of the biggest is the planned separation of Eskom into generation, renewables, transmission and distribution entities.

Unions Support Reform, but Not a Rush

Du Plessis said Solidarity and the National Union of Mineworkers support Eskom’s unbundling in principle. He said Eskom’s board and the Energy Council of South Africa also back the move.

The concern is speed. According to Du Plessis, unions expected President Cyril Ramaphosa to suspend further unbundling beyond the separation of Eskom’s transmission unit during his February 2026 State of the Nation Address.

Instead, Ramaphosa announced that the unbundling of Eskom’s generation and distribution divisions would be accelerated. He also said a task team would report to the Presidency on the process.

Debt Warning for Households

Du Plessis said Eskom had already found that a rushed unbundling was not ideal, based on research and advice from consultancy firm Kearney. He said international examples from Europe, Africa and South America showed that unbundling can go badly when not handled carefully.

The biggest risk sits in distribution. Municipalities owe Eskom Distribution about R110 billion, while National Treasury’s measures to reduce that debt have not succeeded. Du Plessis warned that where distribution businesses already carry heavy debt, separating them from other divisions can increase debt and electricity prices.

Questions Over Political Interests

Du Plessis also raised a theory that a failed unbundling and weakened Eskom could benefit players in the renewable energy sector with political connections. He did not name specific beneficiaries.

Solidarity and NUM are now planning to submit a Promotion of Access to Information request. They want details on the research and reasons behind the accelerated unbundling.