President Cyril Ramaphosa has used his 2026 State of the Nation Address to drive South Africa’s electricity reforms forward. He said the country’s transmission assets will be removed from Eskom and placed under a fully independent National Transmission Company of South Africa once unbundling is complete.

Transmission is the backbone of the grid. Whoever controls it has real power over who can supply electricity and how the system is run.

December Plan Sparked Concern

Uncertainty rose in December 2025 after Electricity and Energy Minister Kgosientsho Ramokgopa announced a plan where the transmission company would remain an Eskom subsidiary, while only the system operator moved outside the utility.

That created concern ahead of the planned launch of the South African Wholesale Electricity Market in April 2026. The fear was that Eskom could still influence the market while also generating electricity.

Grid Bottlenecks are a Major Risk

Severe shortages between 2008 and 2024 showed the damage caused when the grid cannot deliver enough power where it is needed. Demand is concentrated in the east, while much of the renewable energy potential is in the west.

This makes transmission upgrades urgent if South Africa wants to unlock more renewable projects and stabilise supply.

Debt and Control Remain the Big Fight

Eskom has resisted losing transmission assets, arguing its debt is secured against those assets and lenders could demand repayment if they are removed.

To break the deadlock, Ramaphosa has set up a task team under the National Energy Crisis Committee to resolve restructuring disputes within three months. Eskom has publicly pledged cooperation, but the reform process remains under pressure as April 2026 approaches.