Cape Town – President Cyril Ramaphosa has signed the Electricity Regulation Amendment Act into law, introducing significant changes aimed at transforming South Africa’s energy sector.
However, the definitions of “reticulation” and “distribution power systems” were excluded from immediate implementation and will come into effect at a later date, to be announced via government gazette.
The Act, set to commence on January 1, 2025, seeks to create a competitive electricity market by enabling wholesale and retail trade of electricity and allowing the licensing of market operations by the National Energy Regulator of South Africa (NERSA).
These measures aim to establish a level playing field between Eskom and independent power producers, promoting renewable energy and energy security.
“In terms of section 33 of the Electricity Regulation Amendment Act, 2024 (Act No. 38 of 2024), I hereby fix January 1, 2025 as the date on which the said Act shall come into operation, save for amendments to the definitions of ‘reticulation’ and ‘distribution power systems’ in section 1 of that Act, which definitions shall come into operation on a date to be determined by the President by Proclamation in the Government Gazette,” the notice read.
Pres Ramaphosa has proclaimed that the Electricity Regulation Amendment Act will come into operation on 1 January 2025, except the definitions of “reticulation” and “distribution power systems” https://t.co/Um5KcL7sDz pic.twitter.com/pVzsFqxTJw
— PMG (@PMG_SA) December 18, 2024
Key features include:
- Competitive Market: The Act enables non-discriminatory competition between electricity generators.
- Tariff Regulation: Differentiates between regulator-approved tariffs and market-determined prices.
- Market Operations: Introduces market operation as a licensed activity.
These reforms align with South Africa’s goals for energy transition and economic growth, addressing inefficiencies in the current system while encouraging diversity in power generation.
