- The Energy Regulator in South Africa, NERSA, has approved the establishment of a section 5 advisory forum in terms of the Electricity Regulation Act, 2006 (as amended) (‘the ERA’).
- The Electricity Market Advisory Forum (EMAF), will advise the Energy Regulator on various matters related to the establishment of a competitive electricity market.
- Members will be appointed by, and accountable to, the Energy Regulator with an approved term of reference.
The decision of the Energy Regulator recognises the profound changes anticipated in the electricity sector and the role of the Energy Regulator, heralded by the amended ERA, which includes the establishment of a competitive electricity market over the next five years. The EMAF is a proactive move to involve stakeholders to support the Energy Regulator to establish a robust and inclusive regulatory environment to oversee the nascent electricity market. This includes licensing the Market Operator as the National Transmission Company of South Africa’s (NTCSA) licensed activity and approving the Market Rule and Market Code.
The impending electricity market will involve regulatory activities that are novel in the South African environment – such as the task of market surveillance and enforcement alluded to in the draft South African Wholesale Electricity Market (SAWEM) Code. The Energy Regulator, cognisant of the need to garner advice from stakeholders and experts, also appreciates the need to simultaneously accelerate institutional strengthening as a key enabler for an efficient electricity market.
An inclusive consultation process, such as the establishment advisory forum, should also encourage the readiness of all stakeholders for the market as it evolves. The advisory forum will initially focus on advising the Energy Regulator on the finalisation of the Market Rule and Market Code. The EMAF will also advise on key enablers required to establish a competitive electricity market, including the implementation of the Market Rule and Market Code and regulatory oversight of market operations.
Author: Bryan Groenendaal
