Major win for Eskom’s split into three companies
The National Energy Regulator of South Africa (Nersa) has granted a license to the National Transmission Company South Africa (NTCSA) to operate the country’s transmission system. This move is a major milestone in Eskom’s split into three entities – Generation, Distribution, and Transmission.
The legal separation of Eskom into three companies is part of Eskom’s Turnaround Plan and the Department of Public Enterprises’ “Roadmap for Eskom in a reformed electricity supply industry.”
The NTCSA is expected to be operational by December 2023 and will act as a single buyer, purchasing power from Eskom generation and independent power producers (IPPs) to sell to Eskom distribution, municipalities, and large power users.
It will also provide open access to the transmission network and act as an unbiased electricity market broker. The NTCSA is expected to buy 218,000GWh of power annually, with most of it coming from Eskom’s power plants and IPPs.
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