South Africa endured an electricity crisis from 2008 characterised by intermittent rolling blackouts and a growing culture of non-payment. The state-owned utility, Eskom, came to be regarded as the single largest risk to South Africa’s economy. At the end of March 2020 Eskom’s debt stood at R488 billion (US$27.4 billion).
Government has attempted several measures to overcome the country’s energy problems. These have included new Eskom boards, new CEOs, bailouts for Eskom and a National Energy Crisis Committee that includes the private sector. Now it’s trying legislative reform.
In mid-August 2024 President Cyril Ramaphosa approved a new law that marks the most significant change to date in the electricity supply industry. The Electricity Regulation Amendment Act is the beginning of the end of Eskom, the near state monopoly that has dominated South Africa’s electricity sector since the 1950s.
