Restructuring Eskom: Transforming South Africa's Electricity Sector

Abstract South Africa's electricity sector is dominated by the state-owned and vertically integrated electrical utility, Eskom. Once named the Financial Times Power Company of the Year, Eskom now struggles with reliably supplying electricity to Africa's second largest economy. It is the most serious risk to South Africa's national budget and economy. This article discusses how South Africa's electricity sector can be transformed to resolve Eskom's debt crisis, fuel competition, and embrace renewable electricity generation.