Cape Town – South Africa is moving closer to a fully liberalised electricity market, with Johann Rupert-backed Energy Exchange of Southern Africa (EXSA) playing a key role in ending Eskom’s 103-year monopoly.
According to Daily Investor, EXSA, which received an electricity trading licence from the National Energy Regulator of South Africa (Nersa) in 2022, was established by Remgro to enable businesses and, eventually, households to buy electricity from a range of private producers rather than relying solely on Eskom.
The company has already secured multi-billion-rand agreements with major companies, including Mediclinic, Woolworths, Old Mutual, Siqalo Foods and Seriti Green, and sources much of its electricity from renewable energy projects such as solar and wind farms.
According to EXSA, a fully liberalised market would fundamentally change how electricity is bought and sold in South Africa.
“A fully liberalised market isn’t just about ending a monopoly, it is the dawn of a new era where energy is traded in real time, and prices are discovered transparently,” the company said.
Eskom welcomes Phase I work of the Presidency’s Eskom Restructuring Task Team (ERTT) and Phase II focus on financial sustainability, municipal debt and obligations to lenders. pic.twitter.com/BLHjvsVKmI
— Eskom Hld SOC Ltd (@Eskom_SA) August 3, 2026
Under the proposed model, consumers would be able to choose their electricity supplier, while the National Transmission Company South Africa (NTCSA) would manage the grid and the South African Wholesale Electricity Market would facilitate electricity trading.
“In a fully liberalised landscape, the electricity sector is no longer a monolithic entity. Instead, it is a vibrant ecosystem of independent generators, licensed traders, and active consumers,” EXSA said.
The company said the new system would introduce real-time electricity pricing, encourage competition, attract billions of rand in private investment, improve grid resilience through battery storage and renewable energy, and give businesses greater control over their energy costs.
The move towards a competitive electricity market has also received a major boost from President Cyril Ramaphosa, who has endorsed the Phase I report of the Eskom Restructuring Task Team (ERTT), paving the way for the creation of an independent Transmission System Operator (TSO) separate from Eskom.
According to the Presidency, the restructuring aims to create competition, unlock investment, lower electricity prices and improve energy security while supporting economic growth and job creation.
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“This report shows how government can ensure that the architecture of the electricity sector can change as the sector continues to evolve, creating the foundation for South Africa’s growth. It is welcomed that all the key stakeholders are aligned on this objective,” Ramaphosa said.
The Presidency said the independent TSO would play a central role in operating a competitive wholesale electricity market by managing the national transmission grid independently of Eskom.
The ERTT found that the restructuring is feasible, aligns with international best practice and can be implemented without compromising Eskom’s financial sustainability. However, it warned that the growing municipal debt owed to Eskom remains a significant risk that must be addressed.
Detailed implementation plan
Phase II of the restructuring process, which begins immediately, will focus on developing a detailed implementation plan over the next three months.
In the meantime, government plans to strengthen the independence of the National Transmission Company South Africa (NTCSA) by ring-fencing its market, financial and operational functions, while also introducing measures such as unbundled electricity tariffs, improved governance and stronger protection against non-payment.
The Presidency said these reforms form part of South Africa’s broader electricity market overhaul, which aims to replace Eskom’s monopoly with a competitive system where multiple public and private generators compete to supply electricity at the lowest possible cost.
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Compiled by Betha Madhomu
