{"id":852505,"date":"2026-03-01T10:00:00","date_gmt":"2026-03-01T08:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=852505"},"modified":"2026-02-27T17:55:35","modified_gmt":"2026-02-27T15:55:35","slug":"eskoms-monopoly-tactics-in-south-africa-exposed","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business-opinion\/852505\/eskoms-monopoly-tactics-in-south-africa-exposed\/","title":{"rendered":"Eskom&#8217;s monopoly tactics in South Africa exposed"},"content":{"rendered":"\n<p>On 18 February 2026, the Gauteng Division of the High Court delivered a judgment in the case of Sibanye Gold (Pty) Ltd &amp; Others vs. Eskom Holdings SOC Ltd and Another (2026\/123) that will resonate far beyond mining boardrooms and lawyers\u2019 offices.<\/p>\n\n\n\n<p>It exposes, with judicial clarity, the ugly underbelly of a state-owned utility that has increasingly resorted to obstruction, bureaucracy and pretextual proceduralism to thwart legitimate efforts by customers to reduce reliance on Eskom supply through self-generation.<\/p>\n\n\n\n<p>In doing so, the High Court laid bare what commentators have long suspected: Eskom\u2019s conduct has been driven, at least in substantial part, by the fear of losing revenue and market control \u2013 not by genuine safety, regulatory or policy concerns.<\/p>\n\n\n\n<p>This case \u2013 and the compelling findings of the Court \u2013 crystallise a pattern of anti-competitive conduct, bullying behaviour and resistance to structural reform that has plagued South Africa\u2019s electricity sector and left consumers and investors alike wondering whether the utility views law as an obstacle or an opportunity.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">A mining customer\u2019s lawful transition obstructed<\/h2>\n\n\n\n<p>Sibanye Gold, one of South Africa\u2019s largest mining companies, sought to implement a 50 MW self-generation renewable energy project designed to reduce its reliance on Eskom\u2019s grid supply. <\/p>\n\n\n\n<p>This was not a peripheral venture; it was a material investment that promised to improve energy security, reduce carbon footprint, reduce operational risk, and \u2013 crucially \u2013 lower long-term supply costs for the miner.<\/p>\n\n\n\n<p>Under South African law and constitutional principles governing rights of way and servitudes, a landowner (including a customer such as Sibanye) is entitled to wayleave access across an Eskom servitude to connect generation or network assets, subject to reasonable conditions designed to protect safety and system integrity.<\/p>\n\n\n\n<p>Eskom\u2019s response was not to engage constructively. <\/p>\n\n\n\n<p>Instead, it deployed its internal Wayleave Policy and application procedures as a de facto barrier regime, demanding technical documentation, safety studies, institutional approvals and a suite of escalating requirements that bore only a tenuous connection to genuine grid risk. <\/p>\n\n\n\n<p>Sibanye\u2019s legal submissions characterised Eskom\u2019s approach as a bureaucratic maze, laden with shifting criteria and unsubstantiated demands that, in reality, served to delay and deter the project.<\/p>\n\n\n\n<p>In its defence, Eskom invoked a series of generic rationales \u2013 safety, network integrity and compliance with internal guidelines \u2013 all couched in procedural language. <\/p>\n\n\n\n<p>But the High Court was unimpressed. <\/p>\n\n\n\n<p>The judge repeatedly probed Eskom\u2019s evidence and found that the articulated grounds were unsubstantiated, inconsistent and disjointed from the actual network risks identified.<\/p>\n\n\n\n<p>Instead of a coherent safety case, the Court found a pattern of regulatory gaming and pretextual delay.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">What the Court found<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/11\/Eskom-executive.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/11\/Eskom-executive-1024x576.jpg\" alt=\"\" class=\"wp-image-842898\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/11\/Eskom-executive-1024x576.jpg 1024w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/11\/Eskom-executive-300x169.jpg 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/11\/Eskom-executive-768x432.jpg 768w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/11\/Eskom-executive.jpg 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<p>Critically, the High Court did more than describe Eskom\u2019s conduct as procedurally problematic. <\/p>\n\n\n\n<p>It analysed Eskom\u2019s motivation and the practical effect of its conduct on Sibanye\u2019s lawful rights. In a stark finding, the Court observed that:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Eskom\u2019s internal policy requirements lacked clear statutory backing and had not been applied<br>consistently;<\/li>\n\n\n\n<li>The technical and safety concerns raised by Eskom were not proportionate to demonstrable<br>network risk, and in some instances were unsupported by expert evidence;<\/li>\n\n\n\n<li>The real concern underlying Eskom\u2019s obstinacy was commercial \u2013 the potential loss of<br>electricity sales revenue if Sibanye reduced its grid offtake through self-generation.<\/li>\n<\/ul>\n\n\n\n<p>In other words, the Court recognised what many industry observers have long suspected: that Eskom was using bureaucratic preconditions and procedural rigour as a shield to protect its commercial interests, not as a legitimate means of safeguarding network reliability or safety.<\/p>\n\n\n\n<p>The judgment thus amounts to a rebuke not just of Eskom\u2019s conduct in this specific context, but of a corporate culture that is comfortable weaponising policy and procedure to inhibit lawful competition and customer autonomy.<\/p>\n\n\n\n<p>While full case excerpts cannot be reproduced here, key strands of the judgment can be summarised as follows:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Misuse of policy as a barrier<\/strong>: The Court found that Eskom\u2019s Wayleave Policy was used not principally to protect safety or reliability, but as a gatekeeping tool that imposed unreasonably high technical and procedural barriers that a large customer could only overcome at disproportionate time and cost.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Inconsistent and opaque requirements<\/strong>: The Court observed that Eskom\u2019s demands shifted over time and were not supported by a consistent evidentiary record of network risk. This suggested selective enforcement rather than principled application of technical standards.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Commercial motive evident<\/strong>: Perhaps most strikingly, the Court noted that Eskom\u2019s own witnesses and internal policies betrayed commercial considerations \u2013 particularly the prospect of lost load and corresponding revenue \u2013 as an unacknowledged driver of its obstructive stance.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Failure of procedural fairness<\/strong>: The overall effect of Eskom\u2019s conduct, as found by the Court, was to impose a flawed, unfair administrative process that denied Sibanye its lawful rights under property and regulatory law.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>The judgement is emphatic<\/strong>: A utility \u2013 even one as large and politically connected as Eskom \u2013 is not above the law and cannot cloak commercial resistance in procedural or policy language to thwart lawful economic activity.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Why this matters <\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/12\/Eskom-power-station.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/12\/Eskom-power-station-1024x576.png\" alt=\"\" class=\"wp-image-802845\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/12\/Eskom-power-station-1024x576.png 1024w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/12\/Eskom-power-station-300x169.png 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/12\/Eskom-power-station-768x432.png 768w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/12\/Eskom-power-station.png 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<p>The implications of the Sibanye vs. Eskom judgment are significant on multiple fronts.<\/p>\n\n\n\n<p><strong>Customer autonomy and energy transition<\/strong><\/p>\n\n\n\n<p>Large-end, small-electricity customers seeking self-generation or embedded generation are not fringe players; they account for material grid demand and are vital participants in South Africa\u2019s unfolding energy transition. <\/p>\n\n\n\n<p>The ability of customers to deploy generation assets, diversify risk and reduce grid offtake is both a commercial imperative and a policy priority.<\/p>\n\n\n\n<p>Yet, if the dominant supplier \u2013 itself the core of the national grid \u2013 treats such initiatives as competitive threats to be obstructed, rather than opportunities to reduce systemic risk, the transition is inevitably slowed and distorted.<\/p>\n\n\n\n<p><strong>Legal constraints on state-owned monopolies<\/strong><\/p>\n\n\n\n<p>Eskom is not a private cartel; it is a state-owned enterprise operating within a constitutional and statutory framework that prioritises legality, fairness and non-discrimination. <\/p>\n\n\n\n<p>The High Court\u2019s forceful rebuke of Eskom\u2019s conduct reinforces that no public entity is exempt from the rule of law, even when defending its commercial position.<\/p>\n\n\n\n<p><strong>Investor and market confidence <\/strong><\/p>\n\n\n\n<p>South Africa\u2019s electricity sector is in the midst of structural reform \u2013 including the establishment of a competitive wholesale market, licenced trading, wheeling frameworks and third-party access.<\/p>\n\n\n\n<p>Repeated instances of a dominant utility using procedural pretexts to delay or frustrate these reforms send chilling signals to investors and new entrants.<\/p>\n\n\n\n<p>This raises legitimate questions about regulatory certainty and the ability of incumbents to align with marketplace transformation.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">A broader pattern of anti-competitive conduct<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/04\/Eskom-2.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/04\/Eskom-2-1024x576.jpg\" alt=\"\" class=\"wp-image-822000\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/04\/Eskom-2-1024x576.jpg 1024w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/04\/Eskom-2-300x169.jpg 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/04\/Eskom-2-768x432.jpg 768w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/04\/Eskom-2.jpg 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<p>The Sibanye decision joins a series of episodes in which Eskom has pursued litigation or regulatory obstruction in ways that appear more aligned with self-protection than system governance.<\/p>\n\n\n\n<p>Examples include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Eskom\u2019s review applications against NERSA&#8217;s granting of electricity trading licences.<\/li>\n\n\n\n<li>Introducing uncertainty in the emergence of a competitive trading environment.<\/li>\n\n\n\n<li>Assurances about reform are at odds with continued legal challenges behind closed doors.<\/li>\n\n\n\n<li>Arduous registration and compliance demands for residential solar PV and battery storage.<\/li>\n<\/ul>\n\n\n\n<p>Together, these episodes portray an incumbent utility more comfortable in courtrooms than in competitive markets, and more interested in preserving sales volumes than aligning with national policy.<\/p>\n\n\n\n<p>At a moment when the country desperately needs regulatory certainty, private capital, third-party access to public infrastructure, embedded generation growth and non-discriminatory network access, the High Court\u2019s judgment is a stark reminder that legal compliance cannot be outsourced to internal policy manuals or procedural obfuscation. <\/p>\n\n\n\n<p>The rule of law requires clarity, fairness and an empirical connection between cause and effect \u2013 not shifting bureaucratic sands.<\/p>\n\n\n\n<p>The judgment also places Eskom \u2013 and other market participants \u2013 on notice that conduct perceived as anti-competitive and self-serving will be scrutinised not only in policy forums but in open court.<\/p>\n\n\n\n<p>Eskom\u2019s role in South Africa\u2019s energy landscape is unique and immensely consequential. But privilege carries responsibility.<\/p>\n\n\n\n<p>If Eskom continues to approach reform with a defensive, protectionist mindset \u2013 one that deploys wayleaves, applications and safety pretexts as tools of obstruction \u2013 it will not only lose before the courts, it will lose in the court of public confidence and in the market itself.<\/p>\n\n\n\n<p>The Sibanye judgment is not merely a rebuke; it is an invitation to align with law, embrace competition and support a transition that is urgent, long overdue and essential for the country\u2019s economic future.<\/p>\n\n\n\n<p>South Africa cannot wait for clarity. The courts have provided some. Now it is time for practice to<br>follow principle.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Eskom\u2019s derogation of law, competition and trust has been exposed in a new court judgement that blasts the utility for using bureaucracy to obstruct reforms.<\/p>\n","protected":false},"author":36,"featured_media":642081,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[5504,1164,24887],"class_list":["post-852505","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-opinion","tag-chris-yelland","tag-eskom","tag-sibanye-gold"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/852505","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=852505"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/852505\/revisions"}],"predecessor-version":[{"id":852508,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/852505\/revisions\/852508"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/642081"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=852505"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=852505"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=852505"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}