Eskom's Early History

Introduction: The Pre-1923 Energy Paradigm and the Imperative for Centralization

The history of the Electricity Supply Commission (ESCOM, later Eskom) is not merely a chronicle of power stations and transmission lines; it is the fundamental narrative of South Africa’s industrial awakening. Between 1923 and 1948, the organization evolved from a legislative concept into a vertically integrated state monopoly that underpinned the country’s mining, manufacturing, and railway transport sectors.¹ 

This period, often overshadowed by the later apartheid-era expansions, laid the techno-political and institutional foundations that would define the Southern African energy landscape for a century. The story of Escom's genesis is a complex interplay of colonial resource extraction, post-war economic nationalism, and a decisive shift from municipal fragmentation to centralized state control.²

Prior to the establishment of Escom, the South African electricity sector was fragmented, inefficient, and largely privatized. By the early 20th century, electricity generation was the domain of disparate municipalities and private entities, primarily serving localized needs. The City of Kimberley had pioneered electric streetlights as early as 1882 to combat crime, followed by Cape Town in 1895 with the Graaff Electric Lighting Works.⁴ 

However, the discovery of gold on the Witwatersrand fundamentally altered the scale of demand. Steam engines, initially sufficient for early mining operations, quickly proved inadequate for the deep-level mining that came to characterize the South African gold fields.

This vacuum was initially filled by the Victoria Falls and Transvaal Power Company (VFP), established in 1906. The VFP, despite its ambitious name suggesting hydroelectric power from the Zambezi River 1,100 km away, operated coal-fired thermal stations to supply the reef.⁶ By 1923, the VFP and various municipalities operated a patchwork of systems with differing frequencies, voltages, and standards. The lack of a unified national policy stifled broader industrialization and railway electrification.² 

The South African Railways and Harbours (SAR&H), a powerful state entity, required a consistent and massive power supply to electrify the steep gradients of the Natal main line, a project deemed critical for moving coal and goods from the interior to the coast.⁸

The divergence between the profit-driven motives of private entities like the VFP and the state's developmental goals created the political momentum necessary for intervention. The Union government, led by Prime Minister Jan Smuts, recognized that leaving a strategic resource like electricity solely in the hands of a private monopoly—whose primary allegiance was to its shareholders in London rather than national development—posed a strategic risk.¹⁰ 

Consequently, the period leading up to 1923 was defined by a struggle for control over the "means of production" of energy, culminating in a legislative framework that would birth a state-owned giant.

Chapter 1: Legislative Foundations and the Merz Reports

The intellectual architecture of Escom was drafted not in Pretoria, but in the findings of international consultants and local technocrats who envisioned a national grid. The catalyst for the formation of a national utility was the Power Companies Commission study of 1909 and the subsequent Transvaal Power Act of 1910, which first mooted the idea of state expropriation of private power undertakings after a set period.³ However, the definitive blueprint arrived with the involvement of Charles Merz.

The Merz and McLellan Influence

Charles Hesterman Merz, of the renowned British consulting engineering firm Merz and McLellan, is a central figure in the pre-history of Eskom. In 1919, the South African government invited Merz to assess the potential for railway electrification and general power supply. Merz arrived in South Africa in August 1919 and was guided through the country’s infrastructure by F.W. Mills, the Chief Electrical Engineer of the SAR&H.¹² Mills played a crucial role in contextualizing the local terrain and railway requirements for the visiting consultant, ensuring that the recommendations were grounded in the harsh realities of the South African topography.¹²

Merz’s report, submitted to Prime Minister Jan Smuts in April 1920, was revolutionary. He argued against the proliferation of small, municipal power stations, advocating instead for the concentration of power production in large, efficient generating stations located near water and coal sources.¹² Merz contended that electricity should be treated as a public service essential for industrial growth, rather than a commodity for profit. His recommendations were explicit: the fragmentation of the industry was economically wasteful and technically limiting. He proposed a unified standard of frequency and voltage to facilitate interconnection, a vision that would take decades to fully realize.³

The Committee of Sir Robert Kotzé

To translate Merz’s technocratic vision into legislation, the government appointed a committee in 1921 chaired by Sir Robert Kotzé, the Government Mining Engineer. Kotzé was a formidable figure in the South African industrial administration, known for his rigorous intellect and deep understanding of the mining sector's requirements.³

The Kotzé Committee reviewed the Merz findings and endorsed the creation of a statutory body to undertake the generation and supply of electricity. Crucially, the committee had to navigate the complex political terrain involving the VFP, which held a monopoly in the Transvaal, and the municipalities, which guarded their revenue-generating electricity departments jealously.⁸ The committee’s deliberations directly informed the Electricity Act No. 42 of 1922. Sir Robert Kotzé’s influence ensured that while the state would take the lead, the mining industry's need for cheap power would remain the paramount operational metric.³

The Electricity Act of 1922

Passed by the Smuts government, the Electricity Act of 1922 was the Magna Carta of South

African energy. It established two distinct bodies:

1. The Electricity Control Board (ECB): A regulatory body responsible for licensing undertakings and controlling tariffs. Sir Robert Kotzé would go on to serve as a key member of this board, maintaining continuity between the legislative drafting and its implementation.²

2. The Electricity Supply Commission (ESCOM): A public utility tasked with establishing and acquiring undertakings to supply electricity.³

A defining feature of the Act was the mandate that Escom should operate on a "neither profit nor loss" basis. The utility was required to sell electricity at cost, a policy designed to subsidize the mining industry and railways, thereby stimulating the broader economy.² This principle of "power without profit" became the organization's ethos for decades, although it also constrained capital accumulation for future expansion.²

Table 1: Key Provisions of the Electricity Act of 1922

Provision	Description	Strategic Implication
Establishment of ESCOM	Created a corporate body to supply electricity.	Shifted the primary driver of electrification from private capital to the state.
Electricity Control Board	Established a regulator to license undertakings.	Created a check on monopolies, including Escom, though Escom eventually dominated.
Non-Profit Principle	Escom to operate at "neither profit nor loss."	Subsidized industrial input costs (mining/rail), prioritizing economic growth over utility profit.
Expropriation Clause	Allowed for the eventual takeover of private undertakings.	Laid the legal groundwork for the 1948 acquisition of the VFP.
Municipal Rights	Protected municipal generation within boundaries.	Created a dual system where cities generated their own power, delaying full national integration.

Chapter 2: The Establishment of ESCOM and its Founding Figures

On March 1, 1923, the Electricity Supply Commission was officially constituted. The organization’s initial headquarters were humble, located on the first floor of Hofman’s Buildings in Johannesburg, before moving to Electricity House in 1924.⁴ This physical growth mirrored the rapid expansion of its mandate.

Dr. Hendrik Johannes van der Bijl: The Architect of Industry

The success of Escom in its formative years is inextricably linked to its first Chairman, Dr. Hendrik Johannes van der Bijl. Appointed by the Smuts government, Van der Bijl was a physicist of international repute who had worked for Western Electric in the United States on thermionic valves and radio telephony.¹² He was not merely an administrator but a visionary industrialist who saw electricity as the foundational layer for a modern industrial state.

Van der Bijl’s philosophy was clear: South Africa should not follow where others lead but act as a pioneer. He articulated the Commission's mission as providing "power without profit, wherever it may be required".⁴ His influence extended beyond Escom; he was instrumental in the founding of Iscor (steel) and the Industrial Development Corporation (IDC), effectively orchestrating the state-led industrialization of South Africa.¹⁸ 

He served as Chairman from 1923 until his death in 1948, creating a continuity of leadership that allowed the young organization to navigate the Great Depression and World War II.¹⁶ His unique combination of scientific brilliance and business acumen allowed him to command respect from both the technical engineers and the financial commissioners.

The First Commissioners and Governance

While Van der Bijl was the public face, he was supported by a board of commissioners representing finance, mining, and commerce. The appointments in 1923 and shortly thereafter included prominent figures selected to balance the competing interests of the South African economy:

• J.R. Leisk: A key financial mind, James Rankine Leisk was the Chairman of the South African board of Barclays Bank and had served as Secretary for Finance. His involvement ensured that the Commission’s financial structuring, particularly its reliance on debentures and state-guaranteed loans, was robust.¹⁹ Leisk’s presence gave the international financial markets confidence in the new state utility, enabling it to raise the massive capital required for power station construction.

• Karl Gundelfinger: A prominent industrialist and President of the Durban Chamber of Commerce (1926–1927), Gundelfinger represented the interests of commerce and the coastal regions. He served as a commissioner until his death in 1935, playing a vital role in the negotiations for the Natal undertakings and ensuring that the utility did not focus solely on the gold mines of the interior.¹³

• Sir Robert Kotzé: Following his work on the drafting committee, Kotzé remained influential in the sector, eventually serving on the Electricity Control Board. His dual role as a government mining engineer and a regulator ensured that the regulatory environment remained favorable to the mining industry's needs, often prioritizing mine supply over municipal independence.⁸

The relationship between the Electricity Supply Commission (Escom) and the Electricity Control Board (ECB) was critical. The ECB, chaired initially by Sir Robert Kotzé, held the power to grant licenses. This created a unique dynamic where Escom, despite being a state entity, had to apply for licenses just like any private company or municipality.² This structure was intended to prevent total state monopolization and preserve a degree of competition, although Escom’s statutory advantages eventually eroded this balance.

Chapter 3: The Battle for the Rand and the "Witbank Compromise"

One of the most complex aspects of Escom’s early history was its relationship with the Victoria Falls and Transvaal Power Company (VFP). By 1923, the VFP was a dominant force, supplying the lucrative gold mines of the Witwatersrand. It possessed technical expertise, capital, and established infrastructure, including the Brakpan, Simmerpan, Rosherville, and Vereeniging power stations.⁶

The Conflict

Upon its formation, Escom faced a strategic dilemma. The VFP applied to the Electricity Control Board to build a new power station at Witbank to meet the growing demands of the mines. Dr. Van der Bijl opposed this application, arguing that the Electricity Act mandated a state utility to provide power at cost, whereas the VFP sought profit.⁶ Van der Bijl recognized that if the VFP were allowed to build Witbank, they would entrench their monopoly for another generation, sidelining the new Commission. A standoff ensued, threatening to delay critical power supply to the mines which were desperate for energy to drive deeper shafts.¹¹

The Intervention of Bernard Price

The deadlock required high-level intervention. Bernard Price, the Chief Engineer and General Manager of the VFP, was a pragmatic figure who recognized the changing political tides. Price was a highly respected engineer and later became the President of the South African Institute of Electrical Engineers. He understood that fighting the state indefinitely was futile. Prime Minister Smuts called upon Charles Merz to mediate between Van der Bijl and the VFP.⁶

The result was the famous "Witbank Compromise." Under this agreement:

1. Ownership: The Witbank Power Station would be financed and owned by Escom.

2. Operation: The station would be designed, built, and operated by the VFP on behalf of Escom.

3. Distribution: Escom would sell electricity at cost to the VFP, which would then resell it to the mines.⁶

The "Super-Stations" of the Highveld

This arrangement was a masterstroke of pragmatism. It allowed Escom to gain a foothold in the critical Transvaal market without having to immediately duplicate the VFP’s technical staff and operational capabilities. The Witbank station, completed in 1935 (with initial operations earlier), was a technological marvel and one of the lowest-cost producers in the world.⁵ This cooperative model—Escom ownership, VFP operation—was subsequently replicated at the Klip and Vaal power stations.

• Witbank Power Station (1926/1935): This station utilized "duff" coal (small coal particles previously discarded as waste) from the nearby mines, drastically lowering fuel costs. This efficiency justified the "power without profit" mandate.⁶

• Klip Power Station (1936): Located near Vereeniging, Klip became the largest power station in the Southern Hemisphere during this period. It was built on a coalfield bought by the African and European Investment Company and operated by the VFP. The station featured cooling towers that became iconic landmarks.¹¹

• Vaal Power Station (1945): Commenced during the war, Vaal was designed to meet the insatiable demand of the developing Orange Free State goldfields. Its construction during wartime shortages was a logistical triumph.⁷

Chapter 4: The Natal Undertakings and Railway Electrification

While the Transvaal was characterized by cooperation with the VFP, the Natal province (now KwaZulu-Natal) offered Escom the opportunity to build and operate its own assets from the ground up, driven primarily by the needs of the South African Railways.

The Colenso Power Station

The electrification of the Natal main line between Glencoe and Pietermaritzburg was the impetus for the Colenso Power Station. Originally a project of the Railway Administration, the construction was handed over to Escom shortly after its formation. The station was situated on the Tugela River, near the coalfields, minimizing fuel transport costs.⁴

• Construction: Excavation began in September 1922, and the station was taken over by Escom in January 1927.

• Key Engineers: The project was overseen by Merz and McLellan. J.A. West came out from England to serve as the first Resident Engineer, later succeeded by H.H. Jagger, who would later manage the Cape Western Undertaking.¹³

• Significance: Colenso was the heart of the Natal Central Undertaking. By 1927, it was generating over 106 GWh annually, powering the heavy electric locomotives that hauled coal to the coast.¹³

Congella Power Station: Innovation and "Old Smokey"

In Durban, Escom constructed the Congella Power Station, which became the anchor of the Durban Undertaking (later Natal Southern Undertaking). Built on reclaimed marshland near the harbor, Congella was a site of significant technological innovation.

• Pulverized Fuel: Under the direction of Dr. Van der Bijl, Congella became the first station in South Africa (and one of the first in the Southern Hemisphere) to utilize pulverized fuel technology. This allowed the station to burn "dross coal"—waste coal that was previously discarded—thereby significantly reducing operating costs.¹²

• Engineers: The station was designed by Merz and McLellan, with specific input from F. Lydall and F.W. Mills.¹²

• Environmental Challenges: The use of pulverized fuel created a significant ash problem. Despite being the first station equipped with electrostatic precipitators and a saltwater spray ash extraction system, the station earned the nickname "Old Smokey" due to the fine ash that blanketed the surrounding residential areas. This was one of the earliest instances of environmental conflict in Escom's history.¹²

• Expansion: The station saw continuous expansion, with Congella 2 commissioned in the post-war period. It utilized 610 psi steam pressure, the highest in Escom at the time.¹²
  

Table 2: Natal Power Stations Technical Specifications

Feature	Colenso Power Station	Congella Power Station
Established	Taken over 1927 (Built by SAR)	Commissioned 1928 (Built by Escom)
Primary Purpose	Railway Electrification (Glencoe-PMB)	Durban Municipal Supply & Railways
Fuel Technology	Chain Grate Boilers	Pulverized Fuel (First in SA)
Cooling	Tugela River Water	Seawater (Durban Bay)
Key Engineers	J.A. West, H.H. Jagger	F. Lydall, F.W. Mills
1948 Status	85 MW Capacity	~98 MW (Congella 1) + Expansion

Chapter 5: The Cape Western Undertaking and Municipal Rivalries

In the Cape, Escom faced a different challenge: entrenched municipal power. The Cape Town City Council had operated the Dock Road power station since the turn of the century and viewed Escom as an interloper threatening its revenue base.⁸

Salt River Power Station

The construction of Salt River Power Station was necessitated by the electrification of the Cape Town suburban railway system. The site selection involved a direct conflict with the City Council, which bought adjacent land to block the Railways' original plan. Ultimately, a site at the mouth of the Salt River was secured.⁸

• Technical Milestones: Salt River 1, commissioned in February 1928, was the first coal-fired station both built and operated by Escom (unlike Colenso, which was started by Railways, and Witbank, operated by VFP).⁸

• Engineering Feats: In 1932–33, Salt River became the first power station in South Africa to operate at a steam pressure of 425 lb/sq.in. and a temperature of 750°F. It was also the first outside Great Britain to generate at 33kV.⁸

• Cooling: The station utilized seawater for cooling, pumping vast quantities from Table Bay, which improved thermal efficiency but introduced corrosion challenges due to sulfurous salts.⁸

• Consolidation: While the City Council continued to generate its own power, Escom gradually assumed the role of the bulk supplier to the region. The Cape Western Undertaking managed the transmission to the wine-growing and farming areas, slowly integrating the rural Cape into the electric economy.²⁴

Chapter 6: Engineering the Grid: Transmission and Scientific Research

The early history of Escom was not limited to generation; it was also a period of intense scientific research and engineering adaptation regarding transmission. The South African Highveld presented a unique challenge: it had one of the highest lightning flash densities in the world, posing a constant threat to transmission lines.²⁶

Basil Schonland and the Conquest of Lightning

To address the frequent line trips and equipment failures caused by thunderstorms, South Africa became a global hub for lightning research. The key figure in this field was Sir Basil Schonland.

• Scientific Pedigree: A physicist at the University of Cape Town and later the founding director of the Bernard Price Institute of Geophysical Research (BPI) at Wits University, Schonland conducted pioneering work on the nature of lightning discharges.²⁷

• Escom Collaboration: His research, often supported by the VFP and Escom, was instrumental in designing lightning protection systems for the 88kV and 132kV transmission lines that crisscrossed the Highveld. He utilized high-speed photography to map the "stepped leader" process of lightning strikes.²⁷

• Radar and War: Schonland’s expertise in atmospheric electricity led to his crucial role in the development of South African radar during World War II, a technology that shared principles with his lightning detection work. This scientific capability bled back into Escom's engineering standards, making the South African grid exceptionally resilient to atmospheric disturbances.²⁹

Transmission Evolution

Escom’s transmission network evolved from isolated regional grids to the beginnings of an interconnected system. The first 88kV lines linked Pietermaritzburg to Cato Ridge ³¹, while the VFP built the first 132kV double-circuit line from Brakpan to Witbank in the mid-1930s.³² These engineering feats required overcoming challenges related to insulation, span lengths across rugged terrain, and the aforementioned lightning strikes. The interconnection between Congella and Colenso via the Booth substation in 1939 marked a significant step toward a unified Natal grid.¹³

Chapter 7: Socio-Political Context and Labor

Escom’s development cannot be divorced from the racial and labor policies of the segregationist and early apartheid state. The utility was a tool of state policy, and its internal structures reflected the racial hierarchies of the day.

The "Civilised Labour Policy"

In the 1920s and 1930s, the Pact Government (a coalition of the National Party and the Labour Party) implemented the "Civilised Labour Policy." This policy aimed to solve the "Poor White Problem" by reserving unskilled and semi-skilled jobs in state enterprises for white workers at inflated wages, while relegating black workers to the lowest rungs of the labor hierarchy.³³

At Escom, this policy was actively implemented. For instance, at Colenso Power Station during the Great Depression (1930/1931), white labor was employed for unskilled work previously performed by black workers. These men were provided with specific "wood and iron" quarters and a mess hall, with the explicit goal of "qualifying for promotion" to more responsible positions. The average duration of service for these men was 8 months as they moved on to better employment, a mobility denied to their black counterparts.¹³

Housing and Social Control

Escom developed self-contained "company towns" around its isolated power stations. At Colenso, the social hierarchy was physically manifested in the housing arrangements: solid masonry houses for white staff and separate, inferior camps for black laborers. The white residential areas included amenities like golf courses, tennis courts, and clubhouses—facilities officially opened by commissioners like Karl Gundelfinger—reinforcing a privileged lifestyle subsidized by the state utility.¹³ This spatial segregation established patterns of community organization that would persist and harden under formal apartheid after 1948.

Chapter 8: The War Years (1939–1945)

World War II presented Escom with a paradox: demand for power surged due to the war effort and the manufacturing boom, yet the supply of equipment from Britain was severely disrupted.

• Strategic shifts: While gold mining remained the economic backbone, the war stimulated local manufacturing, which required reliable power. The demand for electricity declined initially but surged in the final stages of the war as new gold mines in the Free State were developed.¹

• Equipment Shortages: The expansion of Congella 2 was delayed when the first generator set and three boilers, manufactured in Britain, were commandeered by the British government for war industries. A replacement set was subsequently lost at sea in 1943 due to enemy action, highlighting the vulnerability of South Africa's dependence on imported heavy engineering.¹²

• Uranium: The dawn of the nuclear age in 1945 created a new imperative. The extraction of uranium from gold ore was energy-intensive, prompting Escom to rapidly plan for new capacity, leading to the post-war construction of stations like Wilge.³⁶

• 
  

Chapter 9: The 1948 Turning Point – Expropriation and Consolidation

The year 1948 was a watershed moment for South Africa (with the election of the National Party) and for Escom. It marked the end of the "dual system" of VFP and Escom.

The Death of Dr. Van der Bijl

In December 1948, Dr. Hendrik van der Bijl passed away. His passing marked the end of the founding era. He was succeeded by A.M. Jacobs, the organization's Chief Engineer and Technical Officer, who had been instrumental in the technical design of the early stations.³⁷ Jacobs represented a continuity of the technocratic capability established by Van der Bijl, ensuring that the engineering standards remained high even as the political landscape shifted.

The Expropriation of the VFP

The most significant corporate event in Escom’s early history occurred on July 1, 1948. After years of negotiation and preparation, Escom purchased the assets of the Victoria Falls and Transvaal Power Company (VFP) for £14.5 million—the largest financial transaction in South Africa’s history up to that point.⁵

This acquisition was the fulfillment of the intent laid out in the 1910 Transvaal Power Act. With this purchase, Escom acquired:

• Power Stations: Rosherville, Simmerpan, Brakpan, and Vereeniging.

• Grid: The extensive transmission network covering the Witwatersrand.

• Personnel: The transfer of VFP staff to Escom.

• Operational Control: Full control over the Witbank, Klip, and Vaal stations it already owned but which were operated by VFP.⁶

The VFP system was renamed the Rand Undertaking (later the Rand and Orange Free State Undertaking). This merger effectively ended the private sector's major role in generation. Escom was now a vertically integrated monopoly, responsible for generation, transmission, and distribution across the country's most critical economic zones.

Conclusion

By the end of 1948, Escom had transformed from a legislative idea into an industrial colossus. It had successfully electrified the Natal railways, integrated the VFP’s massive network, and established a footprint in the Cape. The "Witbank Compromise" had served its purpose, allowing the state to leverage private expertise until it was ready to take full control.

The prominent individuals—Jan Smuts, Hendrik van der Bijl, Charles Merz, Sir Robert Kotzé, Bernard Price, J.R. Leisk, Karl Gundelfinger, and A.M. Jacobs—had navigated technical skepticism, political opposition, and global conflict to build a utility that supplied "cheap and abundant" power. As Escom entered the second half of the century, it stood as a powerful engine for the state's economic ambitions, a legacy that was solidified in the formative years of 1923 to 1948.

Table 3: Prominent Individuals in Early Escom History

Name	Role	Contribution
Dr. H.J. van der Bijl	Chairman (1923–1948)	The visionary architect of Escom; defined "power without profit."
Jan Smuts	Prime Minister	Political driving force behind the 1922 Electricity Act.
Charles Merz	Consultant	Authored the 1920 report proposing centralized generation.
Sir Robert Kotzé	Govt. Mining Engineer	Chaired committee for 1922 Act; Electricity Control Board chair.
Bernard Price	GM of VFP	Negotiated the "Witbank Compromise"; partnered with Escom.
J.R. Leisk	Commissioner	Financial expert; oversaw Escom's loan/debenture structures.
Karl Gundelfinger	Commissioner	Represented commerce/coastal interests; active in Natal expansion.
A.M. Jacobs	Chief Engineer / Chair	Technical lead on early stations; succeeded Van der Bijl in 1948.
Sir Basil Schonland	Scientist	Pioneered lightning research essential for grid stability.
F.W. Mills	Chief Engineer SAR&H	Guided Merz's 1919 tour; key to railway electrification specs.
J.A. West	Resident Engineer	First Resident Engineer at Colenso Power Station.
H.H. Jagger	Resident Engineer	Succeeded West at Colenso; later managed Cape Western Undertaking.

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