South African President Cyril Ramaphosa has emphasized the transformative impact of the newly enacted Electricity Regulation Amendment Act, positioning it as a critical step toward ending South Africa’s energy crisis.
Delivering his State of the Nation Address at Cape Town City Hall on February 6, the President asserted that the legislative reform would accelerate the transition to a competitive electricity market and bolster private sector participation.
“The Electricity Regulation Amendment Act, which came into effect on January 1, marks the beginning of a new era,” Ramaphosa said. “This year, we will put in place the building blocks of a competitive electricity market, allowing multiple electricity generation entities to emerge and compete.”
The Act is designed to address the country’s longstanding power supply challenges by restructuring the electricity sector, breaking Eskom’s monopoly and enabling independent power producers to contribute more significantly to the grid. The move is part of a broader strategy to stabilize South Africa’s energy landscape and ultimately eliminate load shedding.
President Ramaphosa also highlighted the strides made under the government’s Energy Action Plan, which has mitigated power outages. According to the President, South Africa experienced over 300 days without load shedding since March 2024 – a notable improvement compared to previous years.
While acknowledging last week’s brief return of power cuts, he reaffirmed that the country is on a “positive trajectory” toward securing energy stability. “We now need to put the risk of load shedding behind us once and for all by completing the reform of our energy system,” he stated.
Key measures under the Energy Action Plan include ramping up renewable energy projects, improving Eskom’s generation fleet and securing private sector investment in transmission infrastructure. The government is actively working to expand South Africa’s transmission network to accommodate more renewable energy sources and ensure long-term energy security.
With the electricity market reforms underway, President Ramaphosa expressed confidence that South Africa would soon see a more reliable and sustainable power supply. “By fostering competition and encouraging investment, we are not only ensuring energy security but also positioning our economy for long-term growth.”
