President Cyril Ramaphosa has endorsed the Phase I report on establishing an independent Transmission System Operator (TSO), launching Phase II of Eskom’s transmission unbundling with a target completion date of 31 December 2027. The Development Bank of Southern Africa (DBSA) issued a request for proposals for transaction advisers on 3 September 2026, setting the end-2027 deadline in its RFP159.2026 document.
The Presidency confirmed on 31 July 2026 that Ramaphosa endorsed the report presented by the Eskom Restructuring Task Team the previous day. In a statement, the Presidency said: “In Phase II, which starts immediately, the detailed transaction structure and implementation plan will be developed. Phase II will proceed over the next three months.”
The DBSA’s request for proposals instructs the appointed transaction adviser to “ensure that the establishment of the TSO is completed by 31 December 2027.” According to BusinessDay, the DBSA says advisers are not being asked to revisit the policy decision to separate transmission ownership from Eskom, but to “review and build on the work that has already been undertaken by the Eskom Restructuring Task Team.”
Eskom executed a legally binding merger agreement on 17 December 2021 to transfer its transmission division to the National Transmission Company South Africa, subject to suspensive conditions. The utility stated on its website that “the transfer [is] subject to the satisfaction of certain suspensive conditions, which include, but are not limited to, Eskom obtaining all applicable creditor consents.”
TechCentral reported on 7 September 2026 that the timetable gives the unbundling a concrete deadline and that transaction advisers have been called in to support the process. The report suggested agreement between Eskom and business, though public alignment exists only on the policy direction while details around financing and creditor consents remain unresolved.
For South African consumers and businesses, an independent TSO is intended to accelerate investment in transmission infrastructure and reduce grid bottlenecks delaying new generation projects. The Western Cape has been particularly affected by grid constraints, with several renewable energy projects in the region awaiting connection capacity.
What remains unknown is whether Eskom’s creditor consents will be secured on schedule and whether the December 2027 target will hold. Cape Flats News journalist Nadia Daniels will update this report as the Phase II implementation plan is finalised over the next three months.