Electricity and Energy Minister Dr Kgosientsho Ramokgopa has indicated that it would be his preference for Eskom chairperson Mteto Nyati to remain in the role beyond his term, which ends in October, while underlining Cabinet’s primary role in the decision.

Speaking at Eskom’s results presentation, where the utility reported a R30.3-billion profit, the Minister highlighted the positive role that Nyati had played in supporting the State-owned group’s operational and financial turnaround, while suggesting that his departure would be premature.

“We know that Eskom has been a poisoned chalice to many that have come before you, but you chose to raise your hand and continue to serve this country.

“And I am confident that also with the Eskom 2.0 that we are building, there can be no better individual who can drive this ship and help us to get to quieter waters.

“We're going through a turbulent phase,” Ramokgopa said, referring to the uncertainty being created by the ongoing reform of the electricity sector.

Questioned by Engineering News & Mining Weekly as to whether Ramokgopa would, as shareholder Minister, be making a case in Cabinet for Nyati’s continued chairpersonship, he said his view on the matter was clear and in the public domain.

“I'm not shy about it. These are my views,” he said, while stressing that there were 30 other Cabinet members who would also have an opportunity to have their say.

“So, what is the point I'm making? It ain't broke . . . If anything, my view, as an individual, is that there's a lot more to be achieved going forward.”

The statement follows a period when Nyati’s comments about the unbundling of Eskom have drawn strong criticism from Business Leadership South Africa (BLSA) and even a rebuke from the Presidency. Notably his opposition to the transfer of ownership and control of the country’s grid assets to a new State-owned Transmission System Operator (TSO) outside of Eskom, which is being set up in line with the Electricity Regulation Amendment Act.

Nyati has since met with both Ramaphosa and BLSA to “discuss the path ahead” and to engage on the “electricity reform programme and the challenges of implementing it” respectively.

Ramaphosa confirmed in a statement that he met Nyati and the Eskom board on Thursday August 27.

The President said government’s commitment to establish a fully independent TSO with ownership and control of the transmission assets had been reiterated, as such a restructuring was needed to create a level playing field for competition and unlock investment in the electricity sector.

This was in line with the outcome of the Phase 1 report of the Eskom Restructuring Task Team (ERTT), set up after Ramaphosa used his State of the Nation Address to contradict an earlier Eskom plan for the grid assets to remain under the ownership of the National Transmission Company South Africa (NTCSA), an Eskom subsidiary.

In his own statement, Nyati also endorsed as “the right policy” the position that the TSO owned and controlled the transmission assets.

But he said he had also raised the board’s concerns about execution, particularly in relation to “protecting Eskom’s financial position, ensuring the TSO can invest in expanding and strengthening the grid, and engaging lenders and funders with transparency and responsibility”.

“The President was clear that government will work closely with the board, the NTCSA, and other stakeholders to implement reform in a way that achieves those outcomes,” Nyati said, adding that alignment between the shareholder and board was not a courtesy, but a requirement.