BLSA and BUSA Urge Eskom to Suspend Legal Actions Concerning NERSA’s Electricity Trading Licenses
Johannesburg – Business Leadership South Africa (BLSA) and Business Unity South Africa (BUSA) have urged the government to take swift action to protect the national energy reform initiative from Eskom’s attempts to undermine it.
In a combined statement issued on Thursday, 7 August 2025, BLSA and BUSA called for Eskom to promptly withdraw all legal challenges concerning the five electricity trading licenses granted by NERSA.
“Eskom’s persistent litigation and obstruction tactics are actively impeding South Africa’s national goal of achieving energy security,” the statement noted.
“Such behavior creates uncertainty, sends a negative signal to investors, delays vital energy projects, and could prolong the adverse economic and social impacts of load-shedding.”
The government’s stated policy calls for the unbundling of Eskom, encourages private sector investment in generation and transmission, and seeks to foster a competitive market to address the energy crisis.
Eskom’s actions contradict this policy direction and seem aimed at disrupting or obstructing the reform process.
As per the statement, by legally challenging the NERSA-approved trading licenses, Eskom is attempting to cling to its historical monopoly at the expense of a stable national power supply.
“Eskom cannot be both the main cause of our energy crisis and the gatekeeper to its resolution,” remarked Busi Mavuso, CEO of BLSA.
“South African businesses are struggling, jobs are disappearing, and our economy is stagnating.
“We require a significant increase in power on the grid, immediately.
“It is illogical and unsustainable for Eskom to use public funds for litigation intended to obstruct the very reforms that the government is advocating, while also blocking investments necessary for affordable, secure energy.”
The economic advantages of the reform process are clear.
Thus far, the Electricity Regulation Act has attracted over R30bn in investments into new renewable generation projects, expected to create nearly 10,000 jobs in generation and storage alone.
Creating a competitive wholesale market is crucial to unlock an additional 6 GW of new private solar PV and 3.5 GW of wind capacity by 2030.
This translates to another R132 billion in private investment and substantial job creation.
Eskom’s actions jeopardize this progress.
BLSA and BUSA argued that Eskom should focus on enhancing and modernizing the national grid to incorporate a variety of energy sources instead of obstructing innovation and competition through legal actions.
The envisioned future energy landscape of South Africa is one characterized by decentralized, mixed-generation capacity, where nimble municipalities and effective IPPs contribute to a resilient and robust national grid.
“Our national objective must be to ensure a dependable and affordable electricity supply for all South Africans. This necessitates collaboration rather than litigation,” stated Khulekani Mathe, CEO of BUSA.
“We call on Eskom’s board and executive management to align Eskom’s mission and actions with the reform strategy outlined in the President’s Energy Action Plan and the Electricity Regulation Act.
“Establishing a dynamic and competitive market that encourages much-needed additional investment is vital for consumers to access affordable and clean energy, crucial for long-term energy security and boosting South Africa’s global competitiveness.
“Anti-competitive and discriminatory practices undermine the national agenda.”
BLSA and BUSA urged the Minister of Electricity and Energy to collaborate with Eskom’s board and relevant government entities to achieve:
- An immediate halt to all lawsuits and legal disputes initiated by Eskom against NERSA.
- A public commitment from Eskom to work with all stakeholders to accelerate the integration of new generation capacity onto the national grid, while expanding the grid.
- Clear instructions from the appropriate government authorities directing Eskom to cease its anti-competitive and discriminatory practices and fully support the liberalization of the energy sector.
The era of a single, state-run monopoly determining our nation’s economic destiny has ended.
To energize our future, we must encourage progress and foster investment and job creation, rather than cling to outdated practices.