South Africa: President Eyes End of Load Reduction in 2027

12 February 2026

Government is working to see the eradication of load reduction by next year.

This according to President Cyril Ramaphosa, who delivered the State of the Nation Address on Thursday evening.

Load reduction is implemented by Eskom in specific areas where electricity supply is available, however, a transformer is at risk due to overloading, which can lead to equipment failure and outages.

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"We will work in each province to address transformer overloading, illegal connections and equipment failure with the objective of eradicating load reduction by next year.

"We are committed to the path that we have embarked on to modernise our energy system," President Ramaphosa said.

He said the restructuring and establishment of an independent State-owned transmission entity is underway.

"This entity will have ownership and control of transmission assets and be responsible for operating the electricity market.

"Given the importance of this restructuring for the broader reform of the electricity sector, I have established a dedicated task team under the National Energy Crisis Committee to address various issues relating to the restructuring process, including clear timeframes for its phased implementation," he said.

The task team will report to the President within three months.

"In addition, we will this year commence the first round of independent transmission projects to enable private investment in expanding our national grid," President Ramaphosa added.

He emphasised the importance of transforming the energy system to "ensure long-term energy security".

"For decades, our economy grew on the back of cheap electricity. But then state capture, mismanagement, inadequate maintenance and inflated megaprojects drove up the cost of electricity to businesses and our citizens.

"Now, with the far-reaching changes we are making to the sector and with our abundant solar and wind resources, we will be able to drive down the cost of electricity," he assured.

New legislation, such as the Electricity Regulation Amendment Act 38 of 2024 (ERAA), has paved the way to allow for more competition in the electricity sector.

"Regulatory changes have enabled a massive and growing pipeline of investment in renewable energy. By 2030, more than 40% of our energy supply will come from cheap, clean, renewable energy sources.

"We are establishing a level playing field for competition, so that we are never again exposed to the risk of relying on a single supplier to meet our energy needs," President Ramaphosa said.

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