- Eskom Holdings has welcomed the National Energy Regulator of South Africa’s (NERSA) decision to grant a Market Operator Licence to the National Transmission Company South Africa (NTCSA), describing it as a major step toward establishing a competitive electricity market in the country.
The approval marks a key milestone in implementing the Electricity Regulation Amendment Act (ERAA), which outlines the future structure of South Africa’s electricity supply industry. Eskom says the development advances the national energy reform agenda and supports efforts to build a more secure, transparent and efficiently run power system that allows broader participation.
“The awarding of the Market Operator Licence to the NTCSA represents significant progress in establishing a competitive electricity market in South Africa,” said Eskom Group Chief Executive Dan Marokane. “It aligns with global best practice, supports a level playing field for market participation and enhances certainty for investors looking to bring new capacity into the system.”
Marokane added that the licensing of the Market Operator, coupled with extensive stakeholder engagement on the Market Code, positions the NTCSA to finalise the code for NERSA’s approval. He said the forthcoming publication of grid allocation rules will provide a clear basis for performance reporting, while the Electricity Market Advisory Forum will offer important guidance as the new system takes shape.
“This sends a strong signal to investors that the country remains committed to a rules-based transition to a competitive marketplace,” Marokane said.
The ERAA mandates the creation of a fully independent Transmission System Operator (TSO) within five years. During the transition, the NTCSA will temporarily carry out certain TSO functions. Eskom says the necessary “building blocks” are already being put in place to meet the timelines set by the legislation.
As part of its broader restructuring, Eskom has shifted from a single, vertically integrated utility to a group structure. The utility emphasised that it will manage the ongoing unbundling process in close collaboration with government, regulators, organised labour, municipalities and other stakeholders. A structured engagement programme is underway to keep affected parties informed, maintain power system stability and support employees throughout the transition.
Author: Bryan Groenendaal
