South Africa took a decisive step towards a competitive electricity market last week when the National Energy Regulator of South Africa NERSA announced three landmark decisions:
Announced during a media briefing on November 27, the decisions give effect to the mandate of the amended Electricity Regulation Act to transition the country towards a competitive South African Wholesale Electricity Market SAWEM. Until the new Transmission System Operator SOC Limited is established within five years the NTCSA will fulfil relevant functions.
The licence authorises the NTCSA to operate the trading platform through which generators, traders, distributors and other market participants will buy and sell electricity. Critically, the MO may not own energy. Its role is to ensure transparent, non-discriminatory and efficient competition.
