Eskom’s new priority to bring down the cost of electricity

Eskom’s board has been given a new priority, bringing down the cost of electricity for households and businesses.

Minister of Electricity Kgosientsho Ramokgopa said that Eskom must now move beyond simply restoring generation performance and focus on building a financially sustainable utility.

This includes reducing system losses and revenue leakage, getting better value from procurement and maintenance, and improving project delivery.

The board has also been told to develop a three-, five- and ten-year roadmap for Eskom covering future generation, the electricity grid, investment and the utility’s position in a more competitive energy market.

Ramokgopa said that Eskom cannot rely on repeated government bailouts or sustained double-digit tariff increases as a business model.

"Eskom 2.0 must give the country confidence that its public utility has a future in that market. It must remain capable of securing supply while creating space for investment, industrial growth and new participants."

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