The South African Electricity IndustryISMO and the Road to Reform

The First Step Towards the End of Eskom's Monopoly

  • Research Code : 9AAE-00-06-00-00
  • SKU : EG00042-AF-MR_00537
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  • Release Date : 21-Aug-2014
  • Region : Africa
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Opening up the power generation sector to independent power producers is imperative as Eskom has shown some of its limits, such as severe funding shortfall, an extremely tight power system, and new-build projects being continuously delayed while power demand shoots. The dominant position of Eskom in power generation, transmission, and distribution prevents third parties from having an open and equal access to the transmission grid. Therefore, the Department of Energy developed the Independent System and Market Operator (ISMO) Bill with the aim to transfer some transmission-related functions from Eskom to the ISMO. The aim of this research service is to understand the functions to be endorsed by the ISMO and its consequences on Eskom.

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