The National Union of Mineworkers (NUM) has rejected President Cyril Ramaphosa’s plans to establish an independent Transmission System Operator (TSO), warning that the unbundling of Eskom could put jobs and public ownership at risk.
The announcement comes after Ramaphosa approved the Phase I report prepared by the Eskom Restructuring Task Team, which recommends separating the transmission system operator from Eskom.
Khangela Baloyi, NUM energy sector coordinator, said they recognised the urgent need to restructure the country’s electricity sector, this should not come at the expense of workers, communities, or Eskom’s role as a strategic state-owned enterprise.
“NUM strongly opposes any proposal to transfer strategic assets, infrastructure, employees, or operational functions from the National Transmission Company of South Africa (NTCSA) to a newly created TSO. Transferring transmission assets away from Eskom carries significant risks of fragmentation, increased private sector influence, and the gradual erosion of public control.
“NUM rejects any asset separation or transfer undertaken without the full consent and comprehensive consultation of organised labour. International experience shows that market liberalisation often leads to workforce reductions and compromised labour standards” said Baloyi.
NUM calls for job safety
The union has called for job safety.
“NUM demands explicit guarantees from the government that no worker will lose their job or suffer degraded employment conditions as a result of these reforms,” said Baloyi.
He said that international experience showed that electricity market liberalisation could result in job losses and weaker labour standards.
NUM has also demanded meaningful consultation with labour as the government moves into Phase II of the restructuring process, which is expected to finalise an implementation plan over the next three months.
Baloyi said workers should not be treated as passive observers in decisions that could affect thousands of livelihoods.
“NUM unequivocally rejects the gradual privatisation and liberalisation of South Africa’s electricity grid. Electricity is a strategic national asset. We call on government to halt all steps toward market liberalisation until a comprehensive social compact is reached with labour and key stakeholders,” said Baloyi.
Eskom says reforms must be phased carefully
Mteto Nyati, Eskom Board Chairman, said the entity supports an independent TSO but believes reforms must be phased carefully to protect Eskom’s financial sustainability and South Africa’s energy security.
“As Phase II of the reform process commences, it is important that the implementation process safeguards Eskom’s financial sustainability and appropriately addresses lender requirements, financing arrangements and contractual obligations.
“The establishment of an independent TSO is a material event for Eskom’s lenders and will require careful engagement as the implementation pathway is developed. Successful reform and a financially sustainable Eskom are complementary objectives that will help support a stable, sustainable and investment-ready electricity sector,” said Nyati.
He stressed the importance of addressing municipal arrear debt, which has reached R119 billion, to Eskom’s long-term financial sustainability and ability to meet existing debt obligations.
“Progress in this area will be an important consideration in developing a sustainable implementation pathway for a fully independent TSO. Eskom, therefore, further welcomes the proposal to establish a focused programme of work to address this challenge,” said Nyati.
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- The National Union of Mineworkers (NUM) opposes President Ramaphosa's plan to create an independent Transmission System Operator (TSO) separate from Eskom, citing risks to jobs and public ownership.
- NUM demands full consultation and job security guarantees before any asset transfer or restructuring can proceed, warning that market liberalisation may lead to job losses and weakened labor standards.
- Eskom supports an independent TSO but urges careful phased reforms to protect financial sustainability and energy security, including addressing municipal debt of R119 billion.
- The Eskom Restructuring Task Team's Phase I report recommending unbundling the transmission system has been approved, with Phase II focused on finalizing the implementation plan underway.
- NUM calls for a halt to electricity market liberalisation until a comprehensive agreement is reached with labor and stakeholders, emphasizing electricity as a strategic national asset.
