The National Assembly of South Africa has passed the Electricity Regulation Amendment (ERA) Bill, with an aim to transform the structure of the electricity sector and boost competition.
The Bill provides an open market platform for competitive electricity trading; making provision for the creation of a Transmission Systems Operator to act as a wheeler and dealer of electricity; strengthening the role of the National Energy Regulator of South Africa by powering it to grant licenses to entities implementing the competitive market and having regulatory oversight during transitioning to a competitive market; and introducing provisions on offenses and penalties to address the theft and vandalism of electricity infrastructure. The Bill will not only support Eskom’s unbundling reforms, but will also encourage private sector participation in the electricity industry and thus introduce competition in the industry.