South Africa Adopts New Electricity Law to Promote Open Market

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BUSINESS News

ENERGY,ELECTRICITY MARKET,SOUTH AFRICA

President Ramaphosa signs Electricity Regulation Amendment Act, paving the way for a more competitive electricity market.

The Electricity Regulation Amendment Act aims to establish an open electricity market where wholesale buying and selling can occur. President Cyril Ramaphosa signed the Act into law, stating it will be effective in January 2024. Two sections will be implemented later. The Act mandates the establishment of a Transmission System Operator SOC Ltd within five years.

This operator will act as a marketing operator, providing a transparent and non-discriminatory trading platform for power market participants. The trading platform is envisioned as a competitive multi-market structure to regulate independent producers' buying and selling. The Act also includes penalties for individuals found in possession of stolen cable or Eskom infrastructure, imposing fines of R5 million or a 10-year prison sentence. Recently, a man was arrested in Durban in September after public members alerted the police to cable theft at a substation

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Big change for electricity market in South Africa — but one big issue remainsPresident Cyril Ramaphosa has proclaimed an implementation date for the Electricity Regulation Amendment Act.
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