Ramokgopa extends Nyati’s term as Eskom board chair

Minister of Electricity and Energy Kgosientsho Ramokgopa has extended the term of Mteto Nyati as the Eskom board chair, ending uncertainty about leadership continuity at the power utility.

In a statement released on Friday, Ramokgopa confirmed that Nyati would continue serving as board chair after his term was set to expire at the end of October 2026.

Ramokgopa has extended Nyati’s term for a further three years, with effect from 1 November 2026.

Nyati, who was first appointed to the Eskom board in October 2022, has been seen as a stable hand at Eskom, helping contribute to the end of load shedding.

Together with his board colleagues and Eskom management, not only have they managed to fade the energy crisis, but the power utility is now profitable and its power stations are performing better.

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Several market watchers expressed concerns about reforms at Eskom being interrupted and leadership instability had Nyati’s term not been extended by Ramokgopa, who oversees Eskom’s governance as the shareholder representative.

Ramokgopa would have sought the approval of cabinet to extend Nyati’s term or reshuffle the Eskom board.

Ramokgopa praised Nyati’s efforts in stabilising Eskom.

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The improvement in the utility’s performance reflects the work of its board, management and employees. His continued service will help carry that work into Eskom’s next phase, where the measure of success will be sustained energy security, a financially sound utility and better service to South Africans,” Ramokgopa said in a statement.

Now that load shedding has ended, Ramokgopa has tasked the Eskom board with developing a single roadmap for Eskom over the next three, five and 10 years.

Ramokgopa said this roadmap must find solutions for Eskom’s future generation mix, its commercial position as the energy landscape changes to embrace renewables, and investments required on its transmission assets.

Ramokgopa said Eskom must be able to fulfil its mandate without relying on repeated fiscal support or sustained double-digit tariff increases as its business model.

In a recent interview with Moneyweb, Nyati said there are two areas that still require reform at Eskom.

Read: Mteto Nyati’s future as Eskom chair uncertain as term nears end

The first is helping Eskom embrace renewable energy sources through Eskom Green, a subsidiary meant to build solar and wind capacity and sell clean energy to customers who increasingly demand it, especially exporters facing penalties for coal-heavy supply.

But the transition also requires baseload power such as nuclear power and 14 000km of new transmission lines to connect renewables.

The task now, Nyati says, is to position Eskom as “an effective player in the future energy space” or risk being left behind.

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The second is tackling and reducing the power utility’s debt stock, which reached R356.2 billion in the year to end-March 2026. The debt levels are unsustainable, said Nyati, adding that it limits Eskom’s ability to be financially sustainable and independent.

Read:
Eskom unbundling stalls as board digs in over lender complexity
Eskom Green may be on a risky path
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Now that Nyati will be with Eskom for another three years, he will oversee a contentious and outstanding reform of Eskom’s unbundling and the transfer of its transmission assets (high-voltage lines and transformers) to an independent operator.

This unbundling will enable a competitive wholesale electricity market where multiple electricity generators compete to drive down prices through market discovery rather than regulated pricing.

President Cyril Ramaphosa has endorsed this plan, but Nyati’s concern (and that of his board colleagues) was to protect the financial sustainability of Eskom after any transfer of assets.

The transmission business is the backbone of the electricity grid and generates stable income for Eskom, which charges customers fees for using the grid.

Nyati says that after meeting with Ramaphosa weeks ago, the Eskom board is aligned with the president on the plan.

Read:
Eskom needs protection against competition, says Ramokgopa
Eskom unbundling stalls as board digs in over lender complexity

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