President Cyril Ramaphosa has signed the Electricity Regulation Amendment Act into law, marking a significant milestone for South Africa’s energy transition, IOL reports. The Act aims to create a more competitive electricity market by enabling the wholesale and retail buying and selling of electricity. It also introduces market operation as a licensable activity under the oversight of the National Energy Regulator of South Africa (NERSA). The Act differentiates between regulator-approved tariffs and those determined by direct supply agreements or market competition, ensuring a level playing field for all generators and customers. However, two sections—defining “reticulation” and “distribution power systems”—have been excluded from immediate implementation, with a future date to be determined.
This legislation is expected to foster competition between Eskom and independent power producers, with provisions to promote renewable energy and ensure non-discriminatory practices in electricity dispatching and system balancing. The Act will come into effect on January 1, 2025, while the definitions for the delayed sections will be announced later via government proclamation.
