SA's reforms 'on track', but BLSA raises red flag over 'U-turn' in electricity sector

South Africa's structural reforms are key to driving economic growth.

While the country's reform programme continues to advance however, there is a concerning backwards movement in the critical electricity sector, alongside slower momentum across governance reforms, says Business Leadership SA (BLSA).

The second BLSA Reform Tracker Quarterly Review sees SA's overall reform score rising 23.7% since tracking began in March 2024.

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The Tracker monitors 245 reform deliverables across criminal justice, governance and economic categories.

BLSA's chief concern around energy policy is about the unbundling of Eskom:

"The approved unbundling strategy represents a step backwards from the independent transmission system operator model that Operation Vulindlela, Necom and National Treasury have been working towards", says BLSA CEO Busisiwe Mavuso.

In December 2025, the Department of Electricity and Energy approved the revised unbundling strategy, which keeps transmission assets inside National Transmission Company or NTCSA (still under Eskom Holdings) and creates a separate Transmission System Operator (TSO) without asset ownership.

"This deviates significantly from the work to establish an independent TSO that supports a competitive electricity market. The new structure means the TSO will be unable to raise capital on its own balance sheet, likely prolonging grid constraints and deterring new renewables rollout."

In conversation with Stephen Grootes, Mavuso points out that the Electricity Regulation Act (ERA) mandates the creation of an independent TSO:

"It lists as one of the TSO's duties being a transmitter, which is clearly defined as being an entity that owns and operates the transmission system. This implies CONTROL and OWNERSHIP of the grid."

For more detail from the BLSA chief, listen to the interview audio at the top of the article