IPP contracts amended to sell to transmission company

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Nersa approvals brings unbundling closer.

A trio of decisions announced by energy regulator Nersa over the weekend represents a big step forward in the unbundling of Eskom, especially the establishment and operationalising of an independent transmission company.

Nersa said in a statement that Eskom, currently an outdated vertically integrated monopoly, applied in December for the transfer of its relevant powers and duties to the NTCSA in what was “a pivotal step in its unbundling process”. The roadmap for the unbundling of Eskom in a “reformed electricity supply industry” unveiled by Gordhan in 2019 envisaged a structure where Eskom Holdings would have three separate subsidiaries –generation, transmission and distribution – with transmission being the first to be established.“The formation of a Transmission Entity under Eskom Holdings will foster a competitive market and will encourage the use of diverse sources of energy,” Gordhan said at the time.

Ramokgopa started working on the funding plan for this late last year, and among other things held an investor conference.

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