SA paves way for competitive electricity market after Nersa approves market operator licence

THE National Energy Regulator of South Africa (Nersa) has taken a major step toward reshaping the country’s electricity sector after approving the Market Operator licence for the National Transmission Company South Africa (NTCSA), along with the establishment of the Electricity Market Advisory Forum (EMAF) and the finalisation of Grid Capacity Allocation Rules.

- SIPHELELE DLUDLA

Announced on Friday, the decisions mark a historic milestone as South Africa moves toward a competitive electricity market over the next five years. The reforms follow sweeping changes introduced through amendments to the Electricity Regulation Act of 2006.

Nersa said the Market Operator licence is a critical component in enabling the NTCSA to operate the future competitive electricity market, and forms part of preparations for the forthcoming Market Rules and Market Code.

Under section 34B(3) of the amended Act, the Market Operator must now submit the Trading Platform, Market Rules and Market Code for regulatory approval.

"The Electricity Market Advisory Forum (EMAF), approved on29 April 2025, will play a vital role in advising the Energy Regulator on the finalisation and implementation of these regulatory instruments, as well as providing guidance on key enablers required to establish a competitive electricity market," Nersa said.

"The EMAF will also support regulatory oversight of market operations, ensuring readiness andinclusivity among stakeholders as the electricity market evolves.