South Africa is embarking on a process of power sector reform, focused on restructuring the country’s biggest state-owned enterprise – Eskom, driven primarily by concerns about the economic implications of an ongoing electricity supply crisis, as well as concerns about the impact of Eskom’s huge debt burden on the country’s fiscus.
While we note a clear differentiation in the factors driving power sector reform between developed and developing countries, in most cases the unbundling of previously vertically integrated utilities was seen as a pathway to enhanced competition and transparency in the sector.
The purpose of this report is to present case studies of international experiences in power sector restructuring with the aim of drawing key lessons and making recommendations for South Africa on how the process of restructuring Eskom could be managed. The report serves as resource for the Eskom Sustainability Task Team (the Task Team) appointed by President Ramaphosa, and informs a number of their recommendations on how the restructuring process can be designed and implemented.