Intec is delighted to have been awarded a contract by KfW and the National Treasury of South Africa (NT) to support the South African government in overcoming the various challenges faced by the current electricity market structure. In the scope of this assignment, Intec is leading a group of highly ranked international and national companies and freelancers specialized in technical, financial and legal market topics, including MRC, Meridian Economics and Genesis Analytics.

However, the situation in the electricity industry has experienced significant challenges during the past decades. As a result, mainly, of governance, efficiency and operational issues, Eskom financial results and operational performance have deteriorated, resulting in substantial negative developments and consequences for Eskom governance and leadership skills, constraining its operation and financial/business model, as well as affecting reliability of supply.

Intec, along with the group of experts, has successfully conducted the inception phase and held an inception workshop at NT’s premises in Pretoria. The inception workshop included KfW and the key stakeholders in South African electricity, such as the Presidency office, Department of Mineral Resources (DMRE) and Department of Public Enterprises (DPE).

The expected scope of work expected in the next period (by end of Nov. 2022) is to:

• Develop in-depth analysis of three potential solutions (as required by the Terms of Reference) both for the overall power sector and Eskom restructuring, tailored to the realities and objectives of the South African electricity industry, both in the national and in the regional context; 
• Describe clearly the policy, sector structure, institutional and legal/regulatory framework to implement the agreed proposed solution, including the main steps and critical decisions and measures to initiate the transition and to move forward until full implementation; and, 
• Develop a medium to long-term roadmap and a short to medium-term action plan based on the long-term road map, including a feasible timeline and key performance indicators.