Integrated Transformation Report

From 2023 to the present, Eskom has undergone a profound organisational, operational, and strategic shift, marking a decisive pivot from an era defined by chronic loadshedding to one increasingly characterised by system stability, structural reform, and modernisation. This period represents a critical inflection point in Eskom’s history, as the organisation transitioned from crisis management towards sustainability, reliability, and long-term sector reform.

Politically and legally, Eskom’s transformation has been shaped by decisive government intervention and regulatory reform aimed at stabilising the national electricity supply and restructuring the power sector. Central to this was the acceleration of Eskom’s unbundling, culminating in the establishment of the National Transmission Company South Africa (NTCSA) as a wholly owned subsidiary. This step signalled a fundamental shift in market design, separating transmission from generation and distribution to enable open access to the grid, support competition, and prepare for a future electricity market with multiple producers. These reforms were underpinned by amendments to electricity legislation and reinforced governance frameworks, ensuring that Eskom’s restructuring aligned with national policy objectives and regulatory compliance requirements.

Economically, Eskom’s operational recovery has had far-reaching implications for South Africa’s economy. Between 2023 and the present, Eskom moved from severe and frequent loadshedding to prolonged periods of uninterrupted supply, driven by improved plant performance and disciplined execution of the Generation Recovery Plan. A defining milestone of this decade has been the improvement of the Energy Availability Factor (EAF) toward the 70% range, reflecting reduced unplanned outages, better maintenance planning, and stronger operational controls. This improvement reduced reliance on costly emergency generation, restored confidence in the electricity system, and contributed to stabilising economic activity by lowering the risk premium associated with power insecurity.

Socially, Eskom’s stabilisation of supply has translated into tangible benefits for households, communities, and businesses. Reduced loadshedding improved quality of life, supported job retention and creation, and restored public confidence in the utility’s ability to fulfil its mandate. During this period, Eskom also strengthened customer-focused initiatives, particularly through Distribution, to promote fairness, transparency, and access. Programmes addressing metering accuracy, revenue protection, and Free Basic Electricity contributed to social equity while reinforcing the sustainability of the electricity value chain. Community engagement around infrastructure modernisation further reflected Eskom’s evolving relationship with the public it serves.

Technologically, the decade has been defined by a decisive shift toward grid modernisation and digital innovation, particularly within the Distribution business. Eskom introduced new customer-facing and market-enabling products, including smart meters, virtual wheeling arrangements, and renewable energy offtake solutions. These innovations support real-time monitoring, flexible energy transactions, and the integration of independent power producers and embedded generation. Alongside these developments, Eskom expanded battery energy storage projects and explored microgrid solutions, laying the foundation for a more resilient, intelligent, and decentralised electricity system. Technology thus became a key enabler of both operational stability and future market readiness.

Environmentally, Eskom’s transition during this period reflected a growing alignment between energy security and sustainability. While coal-fired generation remained central to ensuring supply stability, Eskom increasingly positioned itself to support South Africa’s just energy transition. Improved plant performance reduced inefficiencies and emissions intensity, while new renewable energy programmes, storage projects, and grid access reforms facilitated the uptake of cleaner energy sources. This period marked a shift from viewing environmental responsibility as a constraint to recognising it as integral to Eskom’s long-term relevance and licence to operate.

Leadership and governance changes cut across all dimensions and were critical to enabling the turnaround. Changes in executive and board leadership brought a renewed focus on accountability, performance discipline, and ethical governance. These leadership shifts strengthened oversight of maintenance execution, reinforced compliance with regulatory requirements, and restored organisational credibility. Importantly, governance stability enabled Eskom to implement complex reforms—such as unbundling and new market-facing products—while maintaining operational focus on improving energy availability.