South Africa’s Ramaphosa approves Electricity Reform Bill
South Africa’s President Cyril Ramaphosa has endorsed the passage of the Electricity Regulation Amendment Act into law.
This law was signed on August 16, following an earlier approval by lawmakers before the May 29 elections.
The move is expected to create a competitive electricity market by reducing energy costs and attracting investment in new generation capacity.
The new law sets the groundwork for establishing a fully independent Transmission System Operator (TSO) within five years.
Meanwhile, the state-owned National Transmission Company will serve as the TSO.
The legislation also introduces a new market code to oversee the future competitive market, enabling both wholesale and retail electricity markets. The National Energy Regulator of South Africa, an engineering consultant, will be responsible for licensing new market activities and approving prices, charges, and tariffs.
The law also aims to strengthen the protection of public infrastructure by imposing penalties for theft, destruction, and sabotage of electricity equipment, Energy Capital & Power reports.
This is part of South Africa’s broader Energy Action Plan and Eskom Roadmap, which aim to improve energy access and eliminate load-shedding in the country.
