JOHANNESBURG – Business Leadership South Africa (BLSA) and Business Unity South Africa (BUSA) have urged the government to step in urgently to protect the national energy reform programme, facing Eskom's attempts to undermine it.
In its joint statement on Thursday, August 7, 2025, BLSA and BUSA, Eskom said that all legal challenges should be promptly withdrawn from the five power transaction licenses granted by Nersa.
“Eskom's current litigation and obstruction strategy directly undermines South Africa's national goal of achieving energy security,” the statement said.
“These actions can create uncertainty, send negative signals to investors, delay important energy projects, and ultimately prolong the catastrophic economic and social impacts of load control.”
The policy position the government has stated is Eskom's bundling, encouraging investment in the private sector in generation and communication, and creating a competitive market to resolve the energy crisis.
Eskom's actions contradict this policy's direction and attempt to stall or undermine the reform process.
The statement said with the award of a legally challenged Nersa transaction license, Eskom was actively working to protect its historic monopoly at the direct expense of stable national power sources.
“Eskom is a major cause of the energy crisis and cannot be both gatekeepers for its solution,” said Busi Mavuso, CEO of BLSA.
“South African businesses are failing, jobs are lost, our economy is stagnating.
“We need more power now on the grid.
“It is illogical and completely unacceptable for Eskom to spend public funds on lawsuits designed to frustrate the government's defense and prevent investments that help ensure cheaper and safer energy.”
The economic benefits of the reform process are clear.
To date, the Power Regulation Act is expected to lead to investments in new renewable power projects of over R3 billion, creating and storing alone to create new job opportunities for nearly 10,000 people.
Introducing a competitive wholesale market is essential to unlocking 6 GW new private solar PV and 3.5 GW wind power by 2030.
This represents an additional R132 billion in private investment and substantial job creation.
Eskom's actions are trying to block this progress.
BLSA and Busa argued that the focus of utility should be on expanding and modernizing the national grid to accommodate a diverse range of energy sources, rather than limiting innovation and competition through the courts.
The future of South Africa's energy landscape is one of the capabilities of a decentralized, mixed-generation, with agile municipalities and efficient IPPs contributing to a resilient and robust national grid.
“Our goal as a nation must be a reliable and affordable power supply for all South Africans. This requires collaboration, not litigation,” says Khulekani Mathe, CEO of Busa.
“We are calling on Eskom's committees and management to align Eskom's mission and actions with the direction of reform, as outlined in the President's Energy Action Plan and the Electricity Regulation Act.
“Introducing a vibrant and competitive market that encourages much-needed additional investments is important for consumers to access affordable clean power.
“Anti-competitive and discriminatory practices undermine the national agenda.”
BLSA and Busa urged the Minister of Electricity and Energy to secure it in the Eskom board and associated government agencies.
An immediate halt of all lawsuits and legal disputes that Eskom has launched against Nelsa. The general commitment from Eskom works in partnership with all stakeholders to quickly track the integration of new generations of capabilities to the national grid, along with the expansion of the grid. A clear directive from appropriate government authorities directing Eskom to halt anti-competitive and discriminatory actions and fully support the liberalization of the energy sector.
The era of single state monopoly governing the economic fate of our nation is over.
To promote our future, we must not protect the past, but strengthen progress and encourage investment and job creation.
