Eskom Board tasked with driving down electricity costs

When the Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa, announced that Dr Mteto Nyati would continue as Chairman of the Eskom Board, he tasked the Board with driving down electricity costs, improving reliability and securing the utility’s long-term future. The minister said Nyati’s continued leadership provides stability as Eskom moves beyond the immediate task of restoring generation performance towards securing its role in South Africa’s evolving electricity market.

In terms of Eskom 2.0, the utility is expected to develop a clear roadmap for Eskom through the next three, five and 10 years.

At the media briefing on 25 September 2026, Ramokgopa outlined government’s expectations for what he called Eskom 2.0. He emphasised Eskom’s critical role in supporting investment and jobs and easing pressure on households by providing a reliable and affordable electricity supply. He said: “The shareholder expects the Eskom Board to turn the gains of the recovery programme into a sustainable future for the utility and better service for the people who depend on it.”

In terms of Eskom 2.0, Ramokgopa said the utility must plan for new generation capacity, expand the grid, strengthen customer relationships and adapt to the entry of new generators and traders. The Board is expected to develop a single, clear roadmap for Eskom covering the next three, five and 10 years.

“That must define the utility’s public obligations, future generation mix, 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 a business model,” the minister said.

In line with the Integrated Resource Plan 2025, Eskom must undertake the technical and financial work needed to inform board decisions on the future of the generation fleet. This would include reducing emissions from existing coal-fired power stations, assessing coal-abatement technologies, repurposing and repowering power-station sites, and defining Eskom’s strategic role in gas and nuclear energy.

Eskom Green also has a part to play. “Eskom Green must turn its approved strategy into a credible pipeline of projects. Its planned engagement with potential partners on around 2 GW of renewable capacity is an early step in that work,” Ramokgopa said.

Expanding the transmission grid

Expanding the transmission network is essential to connect new generation capacity and meet growing industrial demand. “The shareholder expects Eskom and the National Transmission Company South Africa to advance a deliverable grid programme, including Independent Transmission Projects,” the minister said. He emphasised that the scale of this investment must support South African manufacturers, suppliers and skills development.

Regional growth

Ramokgopa said Eskom’s growth strategy must also extend across Southern Africa, with regional demand and supply informing opportunities for electricity trade and cross-border interconnectors.

“Viable projects need to be developed with regional partners and potential funders, including the Development Bank of Southern Africa (DBSA), the Industrial Development Corporation (IDC) and the African Development Bank,” Ramokgopa said.

A stronger commercial and customer-focused strategy

The minister also called for a stronger commercial and customer-focused 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 through dependable service, accurate billing and the timely resolution of complaints.”

He noted that municipal debt continues to place electricity supply and network investment under pressure and said the Department of Electricity and Energy will work with National Treasury, the Department of Cooperative Governance and Traditional Affairs (CoGTA), and the South African Local Government Association (SALGA) to strengthen payment discipline and improve arrangements for sustainable electricity supply.

“Free Basic Electricity must reach eligible households. Smart metering can improve customer service and help strengthen revenue collection and the management of distribution networks,” the minister said.

He added that the shareholder expects the Board to reduce system losses and revenue leakage, secure better value from procurement, maintenance and project delivery, and continue strengthening financial controls. The minister said Eskom’s objective should be to obtain an unqualified audit opinion with no material findings.

And he said the utility should expand its use of artificial intelligence, initially to address technical losses, forecasting and grid management, and progressively across its broader operations.

For more information visit: www.sanews.gov.za