By: Saneliso Mlambo
The Presidency and Eskom board are at odds over the pace of the utility’s R110 billion grid restructuring.
The dispute centres on plans to transfer Eskom’s transmission assets to an independent, state-owned operator. The Presidency supports moving ahead, while board chairperson Mteto Nyati has warned about the financial risks.
Nyati raised concerns over the transfer during public media interviews. He stressed that Eskom supports an independent Transmission System Operator, but warned against rushing the process.
“We are singing from the same hymn sheet,” Nyati said on 702. He said the disagreement concerns the financial steps required before transferring the assets.
“The issues that have been raised by Eskom related to the finance side of things have to be addressed first,” Nyati said.
The transmission business contributes about 40% of Eskom’s earnings. Eskom also carries about R350 billion in debt, according to Nyati.
He warned that transferring valuable assets while Eskom remains heavily indebted could affect its financial position. He also raised concerns about Eskom’s obligations to lenders.
The Presidency responded on Tuesday, 11 August, after Nyati’s public comments. Spokesperson Vincent Magwenya described the comments as “unfortunate”.
Magwenya said they created an impression that government was pursuing the restructuring recklessly. He said government was aware of Eskom’s financial and legal obligations.
Following the sharp exchange, Nyati has sought to de-escalate market anxieties, clarifying that there is no fundamental standoff between the board and the government.
He noted that both entities are aligned on the ultimate vision for South Africa’s energy sector and that the ongoing disagreement is purely an internal corporate debate regarding the sequence and timing of the transition.
However, the public dispute has already provided critical ammunition to opponents of the energy sector overhaul. The National Union of Mineworkers (NUM), which strongly objects to the independent grid rollout over fears of privatization and public-sector job cuts, is actively preparing legal action against President Cyril Ramaphosa’s restructuring plans.
Union leadership has stated they will cite the Eskom board’s own explicit financial and default warnings as central evidence in their upcoming court challenge to halt the unbundling entirely.
National Treasury is expected to appoint transaction advisers to engage Eskom’s lenders. The process will assess the financial implications before the asset transfer proceeds.