The newly-established National Transmission Company South Africa (NTCSA) has officially started trading. Serving as the country’s sole transmission company, the establishment of the NCTSA aligns with the government’s efforts to reform South Africa’s electricity market through regulatory efficiency and transparency.
The NTCSA was formed through the unbundling of South Africa’s state-owned power company Eskom in 2019, a process aimed at separating the utility’s core functions – generation, distribution and transmission – into three separate entities. The transmission company’s key role includes serving as transmission system operator and buyer, and is therefore tasked with strengthening the grid, providing energy market services and representing the country as the international electricity trader.
“The NTCSA “will focus on increasing the capacity of the national transmission grid to allow the connection of much-needed new power generation capacity. As a wholly owned subsidiary, it will operate under the direction of an independent board while providing open access to the electricity network, as envisaged during the unbundling process,” said Mteto Nyati, Eskom Board Chairman.
The NTCSA will assume additional responsibilities once the country’s Electricity Regulation Amendment bill – passed through the National Assembly in March 2024 – is signed into law. These include serving as market operator, whereby the company will provide a platform for electricity generators, consumers, traders and retailers to trade.