Eskom and Business Leadership South Africa (BLSA) published a joint statement acknowledging common ground on electricity sector reforms, thereby concluding a public dispute that began in July.
Both organizations reported having conducted 'direct and constructive engagement' regarding the reform program and the difficulties in its implementation. According to the statement, the meeting was initiated by Eskom Chairman Mthetho Nyati.
Both entities now declare full support for the government-led reform program, including the Eskom Restructuring Working Group and its ongoing second phase of work.
They also endorse the president's decision, approved after the working group's first report: the creation of an independent transmission system operator that will own the transmission assets.
The statement emphasizes: 'We view successful reform and a financially sustainable Eskom as complementary, not competing goals. We will not always agree on every aspect of implementation. Where disagreements arise, we commit to engaging directly and substantively.'
Conflict went public
The dispute became public in early July when Nyati used the X platform to accuse BLSA and Business Unity South Africa of hypocrisy. He stated that the two lobbying groups, which had long criticized political interference in state-owned enterprises, themselves advocated for 'political interference' by insisting on transferring transmission assets to a new operator.
Eskom Director Dan Marokane argued that the immediate legal separation of transmission assets could trigger cross-default clauses in the utility company's credit agreements. Mavuso refuted this, noting that bondholders regularly undertake such restructurings. She added that business remains committed to revitalizing Eskom, but support 'cannot extend to accepting the rewriting of established policy.'
This dispute was resolved at the end of July when President Cyril Ramaphosa approved the working group's first report and signed the document on the transfer of transmission system operator rights, which fully owns the network—this overturned the plan approved by the Minister of Energy in December.
Mavuso welcomed this decision 'without any reservations' at the time, stating that BLSA supported an independent network operator 'despite Eskom's own resistance.'
Agreement between parties
The statement, published on Monday, indicates that each party conceded a central point to the other. BLSA achieved the creation of an independent operator owning the assets. In turn, Eskom received assurances of a 'carefully consistent process that protects Eskom's financial sustainability, respects creditors' rights, and ensures national energy security'—the concern about cross-default raised by Marokane is now framed as a common policy.
The working group, led by National Treasury CEO Duncan Peters, was established in March and includes the presidency, the treasury, the Department of Energy and Electricity, and the National Transport Company of South Africa.
The group's second phase focuses on developing a detailed implementation plan with timelines. NTCSA, established in July 2024 as an Eskom subsidiary, currently functions as the temporary transmission system operator. According to amendments to the Electricity Regulation Act, the independent operator must be established no later than December 31, 2029.