Eskom Board Tasked With Driving Down Electricity Costs and Securing Utility’s Future

SOUTH AFRICA — The Eskom board has been officially tasked with driving down electricity costs and improving the reliability of the national power grid, according to Electricity and Energy Minister Dr Kgosientsho Ramokgopa.

Speaking at a media briefing in Pretoria on Friday, the Minister outlined the government’s expectations for the state-owned power utility, emphasizing the need to ease financial pressure on households while securing the utility’s long-term future. Dr Mteto Nyati will continue in his role as Chairperson, providing leadership stability as the utility transitions from restoring generation performance to adapting to South Africa’s evolving electricity market.

Leadership Stability and the Eskom 2.0 Roadmap

Minister Ramokgopa highlighted Eskom’s indispensable role in supporting national investment and job creation. To achieve this, the shareholder expects the board to translate the gains of its current recovery programme into a sustainable business model.

A key deliverable for the board is the development of a single, comprehensive roadmap covering the next three, five, and ten years. This strategic plan must define the utility’s public obligations, future generation mix, commercial position, and necessary investments.

“It must define the utility’s public obligations, future generation mix, commercial position and the investment required to sustain them,” Ramokgopa stated. He stressed that Eskom must fulfill its mandate without relying on repeated fiscal bailouts or sustained double-digit tariff increases.

Energy Transition and Grid Expansion

In alignment with the Integrated Resource Plan 2025, the utility is required to undertake critical technical and financial assessments regarding its generation fleet. This includes reducing emissions from existing coal-fired stations, exploring coal-abatement technologies, repurposing sites, and defining a strategic role for gas and nuclear energy.

Ramokgopa also directed “Eskom Green” to convert its approved strategy into a credible project pipeline, noting that planned engagements with partners for approximately 2 GW of renewable capacity represent a vital early step.

Furthermore, expanding the transmission network remains a top priority to connect new generation capacity and satisfy growing industrial demands. The Minister expects Eskom and the National Transmission Company South Africa (NTCSA) to advance a deliverable grid programme, utilizing Independent Transmission Projects. This investment is also expected to bolster local manufacturing, suppliers, and skills development.

Regional Growth and Commercial Strategy

Eskom’s growth strategy is set to extend across Southern Africa, leveraging regional supply and demand dynamics for electricity trade and cross-border interconnectors. Ramokgopa noted that viable projects will be developed alongside regional partners and potential funders, including the Development Bank of Southern Africa (DBSA), the Industrial Development Corporation (IDC), and the African Development Bank.

On the commercial front, the Minister called for a highly customer-focused strategy. While mining and industry remain crucial demand sources, data centers will require a deliberate approach regarding 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,” Ramokgopa said, adding that municipal debt continues to severely pressure electricity supply and network investment.

To address this, the Department of Electricity and Energy will collaborate with National Treasury, the Department of Cooperative Governance and Traditional Affairs (CoGTA), and the South African Local Government Association (SALGA) to enforce payment discipline. The Minister also emphasized that Free Basic Electricity must reach eligible households and that smart metering should be utilized to improve customer service and revenue collection.

Financial Controls and AI Integration

Looking toward operational efficiency, the shareholder expects the board to aggressively reduce system losses and revenue leakage. The utility is tasked with securing better value from procurement, maintenance, and project delivery while continuously strengthening financial controls.

The ultimate financial objective for the utility is to secure an unqualified audit opinion with no material findings.

Finally, the Minister announced that Eskom must expand its use of artificial intelligence. Initial applications will focus on addressing technical losses, forecasting, and grid management, with progressive integration planned across the utility’s broader operations to drive modernization and efficiency.