South Africa’s President Cyril Ramaphosa has signed the country’s Electricity Regulation Amendment Act into law.
Approved by lawmakers ahead of the May 29 elections and assented by the president on August 16, the law is poised to establish a competitive electricity market in South Africa. The law aims to reduce energy costs, increase investment into new generation capacity and impose penalties for infrastructure sabotage.
The law also lays the legislative foundation to establish a fully independent Transmission System Operator (TSO) within five years. South Africa’s state-owned National Transmission Company will act as the interim TSO.
A new market code will also be established to govern the future competitive market. The code will provide a platform that facilitates a competitive, wholesale or retail electricity market. Under the new code, new market activity will be licensed by engineering consultant the National Energy Regulator of South Africa, which will be responsible for approving prices, charges and tariffs in the country’s electricity market.
The law also reinforces the protection of public infrastructure by imposing fines and sentencing for the theft, destruction and sabotage of electricity equipment in the country.
Falling in line with the country’s broader Energy Action Plan and Eskom Roadmap – established plans to improve energy access and end loadshedding in the country –, the new law is anticipated to diversify South Africa’s electricity system and ensure long-term energy security.
